China Crypto Crackdown Continues By Opening Up Illegal ICO Token Sales Reporting Option
China has been cracking down ICO frauds within the crypto arena for over a year now. The war began with a ban on Initial Coin Offerings within China’s jurisdiction towards the end of 2017. As a result, the country imposed the same fate on crypto coin exchanges that were operating in China then. Today, it would be hard if not impossible to access a digital coin trading platform like Bitfinex while in China.
Just the other week, Regulators from China sighted that they will be blocking over 100 foreign crypto exchanges, this is in a bid to discourage local investors. According to Shanghai Securities Times, the authorities in China under the ‘China National Fin Tech Rectification’ had identified multiple foreign IP addresses offering illegal crypto services.
The latest player to join the war against illegal ICO’s in China is the ‘National Internet Finance Association’. This Chinese-based self-regulatory body is a foundation of the People’s Bank of China meant to work in conjunction with the government.
NIFA recently made significant changes its platform in order to scale its fraud curbing objective to the cryptocurrency industry. A ‘token sales’ portal was added on NIFA’s platform solely for the purpose of reporting potential illegal ICO’s or coin exchanges.
At the moment, NIFA serves the people of China as an avenue for reporting or filing complaints on suspecting financial operations. The body has covered quite much within the sectors of equity finance, online transactions & P2P lending in this tech savvy era!
NIFA’s clearly defines its objective on its website,
“This platform is responsible for gathering reports and complaints regarding internet financial activities and transferring to relevant government agencies, which will take on further actions according to existing regulations upon receiving the reports,”
Chinese people will now be able to extend the effectiveness of NIFA within its internet finance via the added ‘token sales’ alternative. This is expected to be done in line with the stipulations laid down by the PBoC in regards to illegal activities within cryptocurrency.
So far, a couple activities within the crypto markets have been added to NIFA’s platform for reporting. Among them is trading crypto coins, whether crypto for crypto, fiat for crypto or vice versa, engaging ICO process (from the pre-sale to launch) and insuring crypto-operating businesses. This crackdown strikes at a time when China is intensifying the war against illegalities hiding in the grey and unregulated cryptocurrency market.
Furthermore, the Chinese authorities have taken the Anti-ICO campaign to its people by warning them on ICO solicitors from overseas. According to a statement issued, the authorities were specific on fraudulent money-acquiring methods such as ‘Initial Fork Offerings’.
Big corporates like Alibaba and Baidu operating within the Chinese territory are also joining hands with the authorities to curb crypto trading. In addition, informational content within the crypto space is being censored.