Chinese regulators issued a warning about the illegality of fund-raising in crypto-currencies27.08.2018

China continues to pursue a consistent policy of prohibiting its citizens from accessing any investment in cryptocurrencies, including foreign projects. Today, the main regulatory agencies of China jointly issued a warning against illegal fund-raising and trading operations related to brokers and cryptocurrencies.

Six major financial regulators of the country issued the warning: the People's Bank of China, the Commission for the Regulation of Banking Operations, the Securities Regulatory Commission, the Ministry of Public Security, the Central Commission for Cyberspace and the State Administration of Market Regulation.

The warning, in particular, is aimed at cryptocurrency projects that perform transactions using foreign IP-addresses, offer the opportunity to invest in Chinese citizens and use tools for mobile and Internet payments for the trade in cryptocurrencies.

"Some of these projects attract celebrities and give out bonuses free of charge for the purpose of promoting and raising funds ... They manipulate the prices of cryptocurrency to make profits illegally", the regulators said in a warning.

"Some people talk in chats rooms in instant messengers that they can invest in foreign cryptocurrency projects on behalf of domestic investors as a broker ... These statements are in most cases fraudulent".

Regulatory authorities also warned the public about new methods of fundraising, in addition to the primary placement of tokens, such as the initial exchange offering, the initial fork offering and the initial miner offering as methods of speculation on cryptocurrencies.

The Chinese authorities are uneasy about the fact that investors ignore their ban on ICO and margin-based cryptocurrency trade. In the spring, the government blocked the accounts of foreign crypto-exchange exchanges in social networks. At the same time, regulators announced their intention to block IP addresses of foreign crypto-exchange exchanges.

This week reports tell that several Chinese cryptocurrency media was banned from working in WeChat, due to suspicion that accounts are implicated in fraudulent ICOs and criticism of the provisions imposed by the Cyber ​​Space Administration on August 7. In addition, this week, information appeared that Chinese regulators would close access to 124 foreign exchanges of cryptocurrencies, and prohibit advertising of cryptocurrency in the financial district of Beijing.