Senior PBOC Official: All ICOs are Banned, and Bitcoin Platforms are Basically Out of China
China’s financial regulators are ramping up their broad crackdown on cyber-enabled financial crimes, illegal fundraising activities and cryptocurrency activities.
“China has cleaned up domestic bitcoin trading platforms and imposed a blanket ban on ICO activities.” Sun Hui, vice director of the Shanghai head office of the the People’s Bank of China (PBOC) , said on Thursday at a press briefing in Shanghai, according to people.cn.
The PBOC’s senior official pointed out that in the past two years, China’s special rectification of internet financial risks has achieved substantial results. One one hand, many illegal institutions have exited the market and the scale of existing business in violation of laws and regulations has dropped 57 percent compared with two years ago. On the other hand, risks in the new area have been effectively dissolved. The clean-up of bitcoin trading platforms and initial coin offerings in China was basically finished, and authorities made solid progress in regulating ‘cash loans’.
He added that financial regulators will continue to push forward the special rectification work and explore an effective long-term regulatory mechanism to reduce internet financial risks.
When it comes to the regulatory outlook for bitcoin in mainland China, Sun stated that there was no latest news for it so far,but “we have a basic principle, that is, to take corresponding and appropriate regulatory measures for bitcoin-related activities”.
It is not the first time China’s central bank announces their ‘ achievements’ of the clampdown on cryptocurrencies. Gong Yan, deputy director of Legal Affairs Department of the People’s Bank of China(PBOC), emphasized in April that “Chinese government will continue to escalate crackdown on illegal fundraising activities, and ICO projects and crypto trading platforms have safely exited from mainland China”.
After PBOC declared ICO illegal and shut down crypto exchanges last September, China’s major exchange operators like Okcoin, Binance and Huobi have closed their business in mainland China and shift their operations to HongKong or other countries.
In addition, the central bank said in an online statement this Monday that China will step up efforts to crack downon underground banks and illegal foreign exchange trading platforms, and on the arrangements of future moves after a meeting with the Ministry of Public Security.