Chinese Regulatory Agencies Issue Warning Against Illegal Crypto Activities
China Cracks Down on Crypto Fundraising
China generally has an anti-crypto but pro blockchain attitude. Recently, the country’s regulatory agencies jointly issued a warning against illegal crypto fundraising and trading activities. The agencies issued the warning on Friday on Friday and a few of the main participants include the People’s Bank of China, the Banking Regulatory Commission, the Ministry of Public Security, the Central Cyberspace Affairs Commission, and the State Administration for Market regulation.
The warning is aimed at cryptocurrency projects that establish operations using an overseas IP address, but still solicit investment from Chinese residents and use mobile and internet payment tools to facilitate trading. The warning stated:
“Some of these projects tap celebrities and airdrop ‘candies’ as ways for promotion and solicitation . . . in fact, they manipulate the prices of such cryptocurrencies and make profits illegally.”
The warning added:
“Some individuals claim in chat groups on messaging applications that they are able to invest in overseas crypto projects on behalf of domestic investors as a broker . . . These claims are highly likely to be fraudulent.”
Public fundraising campaigns such as initial coin offerings, initial fork offerings, initial miner offerings were identified in the warning as well. This is not the first time China has taken such a stance against cryptocurrencies. Earlier this week, regulators moved to block access to over 100 cryptocurrency exchanges overseas.