The branch of the People’s Bank of China (NBK) in Shanghai has published a document with measures to further tighten the fight against trade in bitcoin and other cryptocurrencies, as well as tokensales.
Primitive Ventures Managing Partner, Dovi Wang, highlighted several key points:
- The regulator considers all token offering schemes, including ICO, IFO, IEO and STO, as illegal placement of securities or illegal fundraising. He considers them potential financial frauds or pyramids.
- Shanghai law enforcement agencies will continue to identify and suppress the activities of crypto trading floors.
- To counter foreign platforms that provide cryptocurrency trading services to residents of Shanghai, the regulator will strengthen control over fiat payment channels and gateways.
- The NBK warns investors to separate blockchain technology from virtual currencies, which are associated with multiple financial risks.
Earlier, the Shanghai authorities launched a campaign to identify and curb cryptocurrency trading activities. It ended today, November 22.
Recall that CCTV1, the mouthpiece of the Chinese Communist Party, harshly criticized cryptocurrencies, calling them “unregistered securities, fraud and Ponzi schemes.”