Central Bank Shanghai Headquarters issued a document: increase supervision and prevention, and combat virtual currency transactions

Source: People's Bank of China Shanghai Headquarters official website

In recent years, speculations related to virtual currency (such as ICO, IFO, IEO, IMO, and STO) have been refurbished and speculative, prices have skyrocketed, and risks have gathered rapidly. Relevant financing entities through the illegal sale, circulation of tokens, raising funds to investors or bitcoin, Ethereum and other virtual currency, which is essentially unauthorised illegal public financing, suspected of illegal sale of tokens, illegal issuance of securities and Illegal fund-raising, financial fraud, pyramid schemes and other illegal crimes have seriously disrupted the economic and financial order.

On September 4, 2017, the People's Bank of China and other seven ministries and commissions issued the "Announcement on Preventing the Risk of Subsidy Issuance Financing" (hereinafter referred to as the "Announcement"), clearing up the ICO and virtual currency trading venues, and the scale of domestic virtual currency transactions was large. The decline has effectively avoided the impact of the skyrocketing virtual currency price on China's financial market. Since then, in order to set up servers to provide virtual currency trading services to domestic residents outside the country, the supervision has been further strengthened, and the clearing and rectification has been continuously strengthened from the payment and settlement terminals.

According to the requirements of the “Announcement”, the Shanghai Financial Stability Joint Conference Office and the Shanghai Headquarters of the People's Bank of China actively carried out relevant centralized clean-up and rectification in Shanghai. At the end of October 2017, the 13 ICO platforms and 10 virtual currency trading platforms that were discovered at that time were completed. Rectify. After the centralized clean-up and rectification, continue to maintain a high-pressure situation, and adopt monitoring measures such as interviews, inspections, and bans on the monitored entities involved in virtual currency activities to resolve related risks in a timely manner.

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Recently, in the process of promoting and promoting blockchain technology, virtual currency speculation has shown signs of rising. In order to further strengthen the prevention and control efforts, according to the overall requirements of the national Internet financial risk special rectification work, the Shanghai Financial Stability Joint Conference Office and the Shanghai Headquarters of the People's Bank of China and the relevant departments at the Shanghai Municipal Level have launched special projects on virtual currency-related activities in Shanghai. Remediation, ordered to solve the problem of providing publicity, drainage and other services for the virtual currency trading platform registered overseas.

In the next step, the Shanghai Financial Stability Joint Conference Office and the Shanghai Headquarters of the People's Bank of China will continue to implement the requirements of the “Announcement” and continuously monitor the virtual currency business activities within the jurisdiction. Once it is discovered, it will be disposed of immediately, and it will be prevented from happening early. Investors should be careful not to mix blockchain technology with virtual currency. There are multiple risks in virtual currency issuance financing and trading, including false asset risk, business failure risk, investment speculation risk, etc. Investors should enhance their risk prevention awareness and beware of being fooled. Being cheated. If investors discover various forms of virtual currency business activities and organize organizations or individuals that continue to conduct ICO and virtual currency trading services to domestic residents through the deployment of overseas servers, they may report to the regulatory authorities, and those suspected of committing crimes may be sent to the public security. The organ reported the case.

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