At a meeting, the deputy chairman of the Chinese central bank said that all new unauthorized Initial Coin Offerings (ICOs) would be destroyed as soon as they become visible to Chinese investors. The warning was addressed to its the people and companies from abroad and in Hong Kong, where ICO issuance is still allowed.
The central bank placed in September 2017 a ban on the trade of cryptocurrencies and ICOs, prompting many companies like Binance, Huobi or OKCoin to move to Hong Kong or in other countries.
People’s Bank of China (PBoC) vice governor Pan Gongsheng addressed harsh words to the foreign ICOs. Gongsheng warned all companies and people who “ran away ” and still wish to do business with the Chinese people that they have to stay alert; because they have to be ” smashed,” Gongsheng told the local media.
The meeting was intended to clarify how to prevent this form of unregulated corporate cash collection. The decentralized structure of the tokens, however, does not allow any external influence.
Surveillance measures which are supposed to make the trade impossible
In addition to the prohibitions and threats of punishment, the recent surveillance measures at WeChat & Co. have resulted in China losing its leading position as a trading center for Bitcoin last autumn. According to the Beijing Central Bank, the Chinese yuan only counts around one percent of all Bitcoin transfers. The government of the People’s Republic is too afraid of the power of decentralized currencies that they can not control. At the moment only the crypto mining is allowed in China. But the operators of the mining farms are also increasingly urged to limit their activity gradually.