China prohibits ICO
China prohibits companies to raise money through ICOs, asks local regulators to check 60 ICO platforms.
Chinese regulators are going to start campaign associated with the initial offer of coins in the country (ICO), according to a report from Caixin.
A list of 60 of the largest ICO platforms, provided by local financial regulators for the purposes of validation and reporting, according to caixin.
The local branch of the caixin reported that the notice issued by the working Committee on monitoring risk in the financial industry, the Internet States sector of the country that will be banned for new projects aimed at obtaining money or other tokens using cryptocurrencies.
He added that the government would fight against such fraud.
The document defines the initial offering of coins (ICF) as a tool for unauthorized collection of funds, which may include financial fraud, the report says, Caixin.
ICO become the primary means of raising funds for projects based on blockchain technology. Companies create digital tokens that can be used to pay for goods and services on their platform or saved as attachments.
This year, startups collected more than a billion dollars in different counters. In China, the ICO has collected at least of 2.6 billion Yuan ($ 400 million).
Some Chinese ICO platforms have already stopped their services.
ICOINFO said on his website that he voluntarily suspends "all functions related to ICO on the website" until you become clear about the evolving regulatory environment.
Btcc, Shanghai-Platform bitcoin exchange, also announced the termination of its ICO-providing services.