PRC regulators have recently banned all token
financing activity. But the rationale and legal basis behind
the ban remains unclear
| 1 minute read |
China’s
central bank has banned companies from fundraising using
initial coin offerings (ICOs), the first regulator to
crack down on the booming token sale market.
A number of issues remain that need to be clarified,
however, including the question whether all token
financings are criminal offences under PRC law. Another
crucial point that needs addressing is the legal status
of tokens: are they goods, virtual currencies or
something else entirely such as securities or investment
schemes? Finally, which regulator is potentially
responsible for overseeing ICOs, and how can they deal
with cross-border offerings, especially when issuers use
foreign websites and social networks? |
The initial coin offering (ICO) in China was handed a
death sentence on September 4 2017, less than a year after its
appearance.
In...