Following the token sale ban by the People’s Bank of China (PBOC), more than 40 Initial Coin Offering (ICO) platforms are reportedly suspending their ICO services. Banks have also been instructed to stop providing service to ICO platforms. However, some token sale prices have slightly recovered as speculators returned, while many ICO platforms face challenges in refunding investors.
40+ Platforms Suspending Services
Following the announcement by the PBOC and six government departments which called for the immediate cessation of all ICO tokens within the country, the National Internet Finance Association of China called for the rectification of 60 ICO platforms, First Financial Daily reported.
On the morning of September 5, the news outlet wrote that “more than half have entered the ‘retreat’ process, delisted the ICO tokens or suspended services.” By 6 pm Beijing time, more than 40 ICO platforms are closing down, according to China Daily. Some have suspended registration while others have permanently stopped operations to varying degrees.
In addition, an insider told a China Securities Journal reporter that the regulators have instructed Chinese banks and payment agencies to immediately stop providing services to ICO platforms, both directly and indirectly. These services include account opening, registration, trading liquidation, settlement and other payment services. Among other measures, transactions in existing personal accounts of ICO platforms should be examined and monitored for anti-money laundering compliance. Suspicious transactions found should also be reported, the regulators said.
