Chinese Finance Association Cautions on Overseas ICOs and Crypto Trading

A self-regulatory organisation in China is warning adults opposite participating in abroad initial silver offerings (ICOs) and cryptocurrency trading.

In a open statement published on Jan 26, a National Internet Finance Association (NIFA) writes that, after China released a ban on ICOs final Sep and systematic closure of cryptocurrency exchanges, it has seen investors relocating their supports to abroad platforms.

NIFA states:

“Recently, as worldwide governments are tightening regulations on cryptocurrencies, some abroad ICO and trade platforms might also face a risk of being forcefully sealed due to correspondence issue. Therefore, domestic investors are suggested to be discreet of a risk.”

Although a self-regulatory classification and not a regulatory authority, NIFA was initial instituted in 2015 by a People’s Bank of China (PBoC) and authorized by a State Council. The warning comes only weeks after a organisation sent out another warning on activities that offer a piece of ICOs, though marketed in opposite forms.

In addition, NIFA highlighted that existent over-the-counter (OTC) trade activities in China are not complying with stream regulation. Some domestic amicable networks have served as a marketplace to promote peer-to-peer trade and some non-banking remuneration collection are also charity services to support a finance, a organisation states.

As reported, following a closure of domestic cryptocurrency exchanges, Chinese investors have mostly changed to OTC platforms that work over messaging applications such as WeChat and Telegram. Payment methods such as WeChat Pay, AliPay and bank transfers are still accessible for OTC traders to pull by transactions.

Citing sum from executive bank’s anathema on ICOs, a organisation forked out that all these activities still tumble within a range of cryptocurrency trading, that might be theme to regulatory oversight.

“Investors should be wakeful that these trade services all have intensity risks on a process front, and be suggested to stay divided from these bootleg financing activities,” NIFA writes.

Just final week, a PBoC’s Beijing bend reportedly released a notice to internal remuneration services requiring them to examine and stop portion cryptocurrency traders in a country.

Chinese currency picture around Shutterstock

The personality in blockchain news, CoinDesk is an eccentric media opening that strives for a top journalistic standards and abides by a strict set of editorial policies. Have violation news or a story tip to send to the journalists? Contact us during

You must be logged in to post a comment Login

Widgetized Section

Go to Admin » appearance » Widgets » and move a widget into Advertise Widget Zone