China Bans Initial Coin Offerings – Token Sales Declared Illegal By Seven Financial Regulators Today

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China officially banned ICOs today. According to a statement released by seven financial regulators in the country, ICOs were declared to be illegal financial activities which seriously disrupted the economic and financial order of the country.

The relevant departments will closely monitor the dynamics, strengthen cooperation with the judicial departments and local governments. In accordance with the existing working mechanism  strict law enforcement will be enforce to resolutely control the market chaos.

According to the document, the tokens or “virtual currency” used in cryptofinancing are not issued by the monetary authorities and therefore do not have legal and monetary properties, do not have legal status equivalent to money, and can not and should not be circulated as a currency in the market use.

As of the date of this announcement, all types of currency issuance financing activities shall cease immediately. The organizations and individuals who have completed the financing of the tokens should make arrangements for repatriation to protect the interests of investors and properly handle the risks.

The relevant departments will seriously investigate and deal with tokens issued and the completion of the tokens issued financing projects in these illegal acts.

As at the date of this announcement, any so-called tokens financing trading platform shall not engage in the exchange of legal currency and tokens, “virtual currency”, and may not be traded or sold as a central counterparty to sell tokens or “virtual currency” Not for the tokens or “virtual currency” to provide pricing, information services and other services.

Read more here in Chinese or (translated to English by Google)

About Richard Kastelein

Founder of industry publication Blockchain News, partner at ICO services collective CryptoAsset Design Group (helped raise over $200m+), director of education company Blockchain Partners (Oracle Partner) and ICO event organiser at leading industry event  CryptoFinancing (first ICO event in Europe) – Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of half a dozen Blockchain startups and has written over 1200 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.
 
Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London, Manchester, Minsk, Nairobi, Nanchang, San Mateo, Shanghai,Tel Aviv and Venice. His network is global and extensive.
 
He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He’s written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com and his work and ideas have been translated into Dutch, Greek, Polish, German and French.
 
A journalist by trade, an entrepreneur and adventurer at heart, Kastelein’s professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he’s travelled for nearly 30 years as a Canadian expatriate living around the world.
 
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, “The Hitchhiker’s Guide to the Seas’ travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he’s raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

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