Slashdot Mirror
China Bans Companies From Raising Money Through ICOs (cnbc.com)
Regulators are about to begin scrutinizing China's initial coin offerings -- an industry worth hundreds of millions of dollars. From a report: Local outlet Caixin reported that a notice, issued by a working committee that oversees risk in the country's internet finance sector, said new projects raising cash or other virtual currencies through cryptocurrencies will be banned. It added that authorities will crack down on related fraudulent practices. The document defined initial coin offerings (ICOs) as an unauthorized fundraising tool that may involve financial scams, the Caixin report noted. The committee provided a list of 60 major ICO platforms for local financial regulatory bodies to inspect. Seven government administrations including the People's Bank of China, China Securities Regulatory Commission, China Banking Regulatory Commission and China Insurance Regulatory Commission issued a joint statement where they reiterated that ICOs are unauthorized illegal fund raising activity. The statement said authorities are banning all organizations and individuals from raising funds through ICO activities and that all banks and financial institutions should not do any business related to ICO trading.
That's 40b that never existed in the first place. When you inflate a balloon, it looks like there is a lot, but essentially, all you have is a thin layer of rubber that you started with.
And when it busts you don't even have anything in your hand to show for your effort. In other words, jacking off is more productive.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
You just made that up out of whole cloth. The Chinese people don't trust their fiat. They are trying anyway to convert their cash into anything that they can use to take currency out of the country.
You are 100% correct. As the spouse of a Chinese national, and a person who has spent a LOT of time (full time) living in China, you are 100% correct. Wealthy Chinese want their money out of China, it's heavily manipulated and controlled, and China is finally cracking down on tax evasion (which is rampant in China).
And you are also completely wrong. Wealthy Chinese want their money out of China - but they also really do NOT want to end up in a Chinese prison or executed (yes, high amounts of tax fraud can receive a death penalty). So they tend to use legal vehicles only, including investments in actual registered overseas companies, legal gifts to family (why do you think the massive rise in "finding my overseas cousins" happened?), and setting up HK corporations that will invest funds overseas. Bitcoin and CC in general are now verboten as financial instruments in China, and no one will trust them anymore - because playing with them in any reasonable amount (10MM RMB or higher) can result in jailtime or worse...
Sucks if you're a CC speculator who's been relying upon the run-up in China/Asia to continue your gains - but that stool has just been kicked out from under you.
Browsing at +1 - no ACs, I ignore their posts. So refreshing!