In a recent news story about China’s central bank – The People’s Bank of China (PBoC) which suppresses the activities of free distributions of crypto tokens.
Based on the financial stability report 2018 that PBoC circulated on Friday, it profusely commented in the report claiming that though PBoC’s erstwhile report to restrict the sale of tokens, the number of ICOs including airdrops have increased substantially.
PBoC further criticized saying that there are some crypto firms are transferring their projects abroad and use agents assisting them to invest.
Whereas some other companies/projects that are not directly involved to raise funds by issuing public tokens, however, they offer free tokens by keeping reserve certain amount of total supply. Following this exercise, they speculate in the secondary market so excitedly in order for the token’s prices to be inflated thereby taking benefits.
Based on the analytical figures available with the bank, it said “there were 65 completed ICOs in China up until July 18, 2017, only five of which were completed prior to 2017. With this, over 105,000 people participated in the sales, providing total funding of about 2.6 billion Yuan ($377.3 million), accounting for more than 20 percent of the sum raised globally in the same period.”
Needless to say that the central bank of China has to hold a strict approach in order to ward off the anomalies that are emanating from the crypto community. Following stiffness in place, PBoC is believed to have coordinated with other agencies in order to closely overlook crypto industry and it has started educating community users by protecting their interest.
The PBoC has already taken certain measures that have restricted token based fundraising exercise since September 2017 especially when it started banning certain ICOs. With this, in June 2018, a vice governor of the PBoC circulated a note saying that the “Crypto Asset trading is illegal in the country”.
Amid this, in August 2018, the China National Internet Finance Association (NIFA), a self-regulatory organization set up by the PBoC started educating community users about the new age perspective!!