Chinese Gov’t Officials To Reward Whistleblowers For Reporting Illegal Crypto Fundraisings
People who decide to denounce illegal cryptocurrency fundraisings such as Initial Coin Offerings (ICOs) in China will now be rewarded by the local authorities, as reported by Sina Finance, one of the largest business media outlets in the country.
Rewards to be offered to Chinese who report illegal crypto-related fundraising pic.twitter.com/bxt5WdIKLD
— Matthew Graham (@mg0314a) November 19, 2019
The reports indicate that Chinese authorities are keen on shutting down all illegal ICOs, so they decided to use the help of the citizens. The financial regulators of the country recently issued a letter to municipal governments explaining that they should denounce all kinds of ICOs that can be considered illegal in the country.
All citizens of the country are encouraged to report any occasions in which illegal fundraising may be happening. The information will be checked and, if it is true, the denouncers will get a reward from the government afterward.
China has banned all domestic ICOs back in 2017, meaning that any kind of ICO is illegal in the country since then. This doesn’t prevent people from trying to start ICOs anyway, which is why the government needs to keep tracking the people who break the local. The reason for banning ICOs is that the People’s Bank of China claimed that over 90% of them were scams.
This happens during a time in which the blockchain technology is growing in the country. Recently, the country’s President Xi Jinping backed the blockchain and affirmed that it would help in the development of China. The country is not as positive on cryptocurrencies, though, which are said to be scams or financial dangers to stability.