The Chinese financial authorities are finally ramping up the crackdown on illegal fundraising activities. The news comes from a conference that was held in Beijing this Monday. On it, major Chinese authorities said that they will keep a close watch on the interest rates charged by companies and financial firms in the private sector – increasing their scrutiny on the illegal fundraising methods.
The People’s Bank of China is one of the many authorities that is pushing the initiative towards blocking ICOs and cryptocurrencies. According to Reuters, the bank had ‘safely closed down’ all of the initial coin offerings, platforms and cryptocurrency exchanges present in the country.
China first issued the blanket ban on all domestic ICO platforms in September 2017, following the ruling with restrictions in order to shutter the domestic crypto trading industry. The crypto clamps began as early as January 2017, when Bitcoin celebrated the first high of $1,000 at the time.
According to research from China’s internet finance association, Chinese citizens are continuing to participate in the crypto trading through foreign exchanges and ICOs. Despite the final crackdown as it is seen by the authorities, the domestic crypto traders are moving overseas and having their assets released from the domestic financial system.
Meanwhile, there are also many financial scams such as illegal fundraising in China. This industry has racked up $36.5 billion in 2016 which was spread over 5,000 new criminal cases, according to the state-run news agency. More than 30% of them were found to be related to private investment platforms.
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