China’s central bank together with other domestic financial regulators announced a ban on initial coin offerings (ICO) in China.
The People’s Bank of China intends to severely punish those who will dare to conduct ICOs as well as fine for violations in past operations.
The regulator defined ICOs as an unauthorized fundraising tool that may involve financial scams. Individuals and companies involved in ICO activities were instructed to make relevant arrangement to return funds.
ICOs are a popular tool of investment in start-ups and tech projects by creating and selling new crypto tokens to investors.
Earlier, Chinese authorities supervising financial activity in the country said that 65 ICOs have raised at least $400 million from 105,000 investors in 2017.
