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After Bitcoin [BTC] crackdown, Bank of China releases statement against ICOs, asks public to “be rational”

Anirudh VK

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After Bitcoin [BTC] crackdown, Bank of China releases statement against ICOs, asks public to "be rational"
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The People’s Bank of China has released a circular warning citizens against “lawless elements” indulging in illegal fundraising. This was done in conjunction with the Banking Regulatory Commission, the Central Network Information Office, the General Administration of Market Supervision and the Ministry of Public Security. The announcement comes after mounting regulatory moves to enforce the cryptocurrency ban.

Over the last week, China has begun enforcing moves that will allow it to effectively curb Bitcoin [BTC] trading in the country after it was deemed illegal late last year. However, traders resorted to over-the-counter trading solutions through social media apps such as WeChat, leading to the government to lock that down as well.

The warning is for those that use phrases such as “financial innovation” and “blockchain” to  “absorb funds through the issuance of so-called “virtual currency”, they said. The circular also remarked upon the practice of these concepts for “illegal fundraising” and “pyramid schemes”.

They further went on to say that there are widespread risks and fast diffusion of information due to the internet, with proponents setting up overseas servers in order to orchestrate these fundraising methods. They stated:



“The funds for these illegal activities are mostly overseas, and supervision and tracking are very difficult.”

Moreover, they remarked upon other characteristics such as utilizing propaganda, airdrops and other “temptations” to invite people to participate in the fundraising. They also spoke about the issuance of tokens in the form of ICOs, and how they carry out “virtual currency speculation under the banner of sharing economy”. They further went on to say [trans.]:

“There are a variety of illegal risks. Through public propaganda, the criminals used the “static gain” (profit-making appreciation) and the “dynamic income” (development profit) as a bait to attract the public to invest funds and encourage investors to join the development and expand the pool of funds. It has the characteristics of illegal activities such as fund raising, pyramid schemes and fraud.”

The way that these products manage to scam new customers is by utilizing “financial innovation” as a gimmick, said the release. They also said that the operation of such funds is difficult to maintain for a long amount of time. Moreover, they went on to state:

“The general public should be rational about the blockchain, do not blindly believe in the promise of blockchain, establish a correct monetary concept and investment philosophy, and effectively raise the awareness of risk; and actively report the violations of the law to the relevant departments.”





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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more

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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more

Daily Crypto News – May 25

1) Bitcoin Wallet receives part of 5,000 BTC: A recent Whale Alert highlighted a transaction on May 24, where a large sum of Bitcoin [BTC] exchanged hands between two anonymous wallets. According to the alert the transaction took place at 22:13:23 + 1 minutes and 5,000.00001092 BTC was transferred from an unknown wallet, with address 19SiCYaYKZh9A8HUjuh14eg5wtYzKxiFbB, to another unknown wallet with address 14GcjGjxwadzcpmq9EG3KUgTKATjurbnWt.

Read more at https://bit.ly/2VRQwb0

2) Bitwise Report 2.0: Bitcoin [BTC] futures continues growth: On a month-on-month basis, Bitcoin Futures saw a massive bump in April trading at an average of 10,000 contracts daily, peaking on April 4, with over 22,000 contracts traded. To put that number in perspective, in March 2019, the average contracts traded was less than 4,000. Despite the high standards set in April, the average daily contracts traded in May, with 25 days gone has exceeded 14,000 and still looks to grow, given the price performance of Bitcoin.

Read more at https://bit.ly/2W40sTR

3) Craig Wright on private keys: Craig S Wright has, for years, claimed he is the true creator of Bitcoin [BTC] without providing a shred of evidence to support the same. With the crypto-community levelling, Wright could prove his worth by sending BTC from Satoshi Nakamoto’s touted wallet containing around 980,000 BTCs, the BSV man in a twisted cause and effect situation, stated he will “sign” into his wallet only when he proves he is the creator.

Read more at https://bit.ly/2X6fdlw

4) Tether’s [USDT] market cap hits ATH: Tether and Bitfinex are being closely scrutinized now more than ever due to the NYAG’s lawsuit; however, the scrutiny doesn’t seem to have affected Tether as the market cap of USDT has increased by over $100 million in approximately 70 days.

Read more at https://bit.ly/2McaTjE

5) Tether volume shift: Another controversial topic in the cryptocurrency industry was the issue of fake transaction volumes on many of the popular cryptocurrency exchanges. The magnitude of the topic was so large that even Changpeng Zhao, the Chief Executive Officer [CEO] of Binance had raised red flags. This topic and Tether as a whole received another twist when Larry Cermack, the Director of Research at The Block, pointed out a few parameters when it came to the said volume.

Read more at https://bit.ly/2wmk4mJ

6) Bitfinex’s LEO tokens listed on Delta Exchange: Bitfinex’s Leo tokens faced quite a lot of criticism when they were announced, due to the missing $850 million funds from Bitfinex. The private investment round by Bitfinex also faced a lot of heat from the media. However, in a recent development, Leo tokens are being listed on various exchanges for trading.

Read more at https://bit.ly/2HUEnNB



7) Robinhood en-route a projected valuation of $7 billion: Robinhood, the California-based cryptocurrency exchange made headlines recently when a source close to the organization revealed that it was on the verge of closing their latest round of funding at a valuation of a whopping $7 billion – $8 billion. Sources even claimed that the current round of funding could act as a precursor to an even bigger round of funding, which would pit Robinhood with the bigwigs like Coinbase and Binance.

Read more at https://bit.ly/2W64KKj





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