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PBOC Official Encourages Blockchain Development Despite ICO Ban

Beijing 12 September-Sun Guofeng, Director of the People’s Bank of China Institute of Finance, says that the ICO ban doesn’t prevent Fintech Company or technology companies to continue to explore blockchain technology. Financial technology is risky in its nature and regulation is necessary. China shall establish sustainable regulation technology mechanism to promote appropriate internalization of regulatory costs.
The report shows that the authority wish to preserve the exploration on blockchain while restricting illegal fundraising through ICO.

Meanwhile, Ding Ning, the major operator behind the “ezubao” P2P lending scheme, is sentenced to life imprisonment today in Beijing.  Ezubao had cheated about 900,000 investors out of more than 50 billion yuan (~7.7 billion USD).
Sun points out that ICO is connected with illegally selling tokens, illegal securities issuance, illegal fundraising, financial fraud, pyramid schemes and other criminal activities. It’s very necessary and timely to stop the ICO at the moment. However, this should not stop relevant financial technology companies, industry agencies, and technology companies to continue to study the blockchain technology. Blockchain itself is a good technology. ICO is not the only way to explore the blockchain technology. There are other options.

“Therefore, we need to separate blockchain technology from ICO. Blockchain could be utilized in many scenarios, including social management cases. Blockchain is not equal to ICO. We need to expand our visions on research and blockchain development.”

Suo Guofeng said.
As for the regulatory sandbox, he said, pilot program could be conducted in some particular area. But it’s not appropriate to try out in China. The main issue of Chinese regulatory technology at present is the lack of regulation.
In early June 2017, Yao Qian, Deputy Director of Science and Technology Department of People ‘s Bank of China, suggests that “regulatory sandbox” might be implemented for ICO. Yao’s opinion about ICO are:

2. ICTO (Initial Crypto Token Offering) is more accurate term for ICO. Although many ICOs have no value, such activities are helpful to the ecosystem.

5. Regulatory Sandbox approach could be adopted towards ICO. Prudent tolerance is accepted but it must no go wild. A legal framework for ICO should be established ASAP. If an ICO project has no intrinsic value, it’s a ponzi scheme.

Total ban on ICO might be effective in eliminating fraudulent schemes. But some genuine blockchain startups took the hit and now is in an awkward situation without funding. The dramatic change of direction show great uncertainty in regulation policies.

COMMENTS(21)

  • hl5460
    3 months ago hl5460

    Beijing 12 September-Sun Guofeng, Director of the People’s Bank of China Institute of Finance, says that the ICO ban doesn’t prevent Fintech Company or technology companies to continue to explore blockchain technology. Financial technology is risky in its nature and regulation is necessary. China shall establish sustainable regulation technology mechanism to promote appropriate internalization of regulatory costs.The report shows that the authority wish to preserve the exploration on blockchain while restricting illegal fundraising through ICO.http://news.8btc.com/pboc-official-encourages-blockchain-development-despite-ico-ban

  • BitcoinAllBot
    3 months ago BitcoinAllBot

    Here is the link to the original comment thread. Or you can comment here to start a discussion. Author: 8btccom

  • williaminlondon
    3 months ago williaminlondon

    These are interesting articles you post, thanks for posting them here.

  • satinaming
    3 months ago satinaming

    Ding Ning is sentenced to life imprisonment

  • Nismoman
    3 months ago Nismoman

    To the moon~

  • JordyCA
    3 months ago JordyCA

    This is promising. It’s clear they want to find a way to make ICOs an effective means for fund raising but need to find a way to make it safe for the people to participate.

    When these regulations are in place, neo is going to shine.

  • CriticalStrike87
    3 months ago CriticalStrike87

    Fly baby fly

  • vitriolic_amalgamati
    3 months ago vitriolic_amalgamati

    yeah he was apparently operating a giant ponzi scheme

  • error08
    3 months ago error08

    China have big source for bitcoin as most of the biggest mining pools are in there, they have cheap electricity and  ASICs hardware manufacturers. If China government utilize cryptocurrency, they will lead and possess big portion of bitcoin, which make them easily to manipulate the price.

  • Shanedawg7
    3 months ago Shanedawg7

    This is what we needed to hear, I bought more.

  • manish369
    3 months ago manish369

    Was waiting for this. Thanks for sharing.

  • dietereater
    3 months ago dietereater

    Looks like the crypto space is now a haven for censorship under the guise of moderation… Give a person a taste of power they with turn into Adolf Hitler.

  • fonduman
    3 months ago fonduman

    Strange how there doesn’t seem to be any price movement in response to this

  • Ibah83
    3 months ago Ibah83

    Lets get the wings back on..and fly !

  • TheCryptoKeeper
    3 months ago TheCryptoKeeper

    Wait till China wakes up

  • 1s44c
    3 months ago 1s44c

    Always the Hitler comparisons.

  • Coin1071
    3 months ago Coin1071

    Look like your wings broken :), NEO is a snail and plus they are not hungry, to be honest. they don’t think Neo can go back to $48 as few weeks ago. Gov wanted NEO two split Corp and Public, and we are holding NEO as public , think of Eth & Eth classic. everyone in China and Asian are new this coming very soon, we have been setup for this, good luck with your NEO

  • platypusmusic
    3 months ago platypusmusic

    Sun points out that ICO is connected with illegally selling tokens, illegal securities issuance, illegal fundraising, financial fraud, pyramid schemes

    the government run fiat money system is literally a pyramid scheme that forces everyone to participate or end up in jail

  • tomaenji
    3 months ago tomaenji

    Kinda like when your mom slaps you on the face and then gives you a sweet

  • liptonaround
    3 months ago liptonaround

    And where is the source? Or are they just merely your speculation like everyone else, trying to spread the FUD?

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