China ICO ‘Suspension’ Warning Echoes Regulator Treatment Of Exchanges
ICOs could see a full “suspension” in China if regulators see “large risks” to consumers, reports say.
The People’s Bank of China (PBoC) is reportedly considering a blanket ban on ICOs if lawmakers find “large risks” to consumers.
According to reports from a meeting earlier this month by local news outlet Tencent, the PBoC is actively assessing possible limits on ICO activities in China.
A source told the publication that the meeting included participation from the country’s Securities and Futures Commission, and Banking Regulatory Commission among others.
Among the tools under consideration are controlling the size of ICOs, beefing up requirements for disclosure of information and more overt warnings about the risks associated with investing.
“In addition, if a large risk is found (for investors), the regulator will suspend all activities associated with ICOs and address them,” Tencent stated.
The warnings echo a similar tone from the PBoC on cryptocurrency exchanges themselves earlier this year. After investigatory measures, regulators shut down Chinese exchanges for multiple weeks in order to put new legislative framework in place.
While exchanges are now compliant with demands, ICOs still operate in a legal gray area in China, which has led to warnings over the potential punishments for those participating in sales not to authorities’ liking.
The PBoC gave notice of its intention to regulate the ICO market in June.