In light of major developments today, China's central bank has issued a direct ban on all initial currency support operations, calling it an illegal fund raising practice. The People's Bank of China also launched a formal notice that China's central bank and China's financial regulator believe a ban on primary currency financing (ICO) should be imposed "seriously disrupting the economic and financial system". In the first half of 2016, 2.616 billion yuan (about $ 400 million) was invested in initial currency support, according to the Chinese newspaper Yikai, citing an official report.
Excerpt from the ad launched by the bank:
"As of the date of this declaration, all types of currency support activities will be immediately discontinued. Organizations and individuals who have completed currency financing should make the necessary arrangements to return them, protect interests rationally and deal with risks properly. "
A number of government departments and other regulators supported the announcement posted on the Chinese Central Bank's website, including the China Securities Regulatory Commission, the Chinese Banking Regulatory Commission, the China Insurance Regulatory Commission and the Ministry of Industry and Trade. An investigation into currency support operations before today's statement. Now, all the money raised has been blocked from currency support operations, and individuals and organizations that have already completed these donations must return all funds to investors. In addition, the Commission has also prepared a list of 60 main platforms for regulators and authorities conducting currency support operations for their inspection, according to the Chinese news channel Caixin. CCN also reported in late August that the Chinese authorities had held a meeting to discuss the setting up of controls on initial currency support operations (ICOs) on 18 August, where a full ban on all such operations was discussed. Last week, the National Association of Internet Finance in China issued a warning about the eco-friendliness of members, and the eco-platforms were seen as a threat to the stability of the financial sector in China.
