Ban on virtual currency government ico

1.

One is to block the "going to sea" virtual currency trading platform. As of May 2018, 110 websites, including hot coin.com and coin.com, have been blocked

Fourthly, risk warning and public opinion guidance should be actively carried out. Together with the China Internet Finance Association, we remind the public to be highly alert to the risks and hazards of virtual currency related activities through various channels and forms

Fifthly, we should actively support and cooperate with the public security organs to crack down on all kinds of fake virtual currency and related illegal fund-raising, fraud, pyramid schemes and other activities. According to the statistics of public security organs, in recent years, nearly 300 cases of virtual currency crimes have been filed and investigated

2. It is forbidden in China, but some countries in the world recognize it. For example, Singapore is now the best choice for ICO
from the subject of registration to the later legal services, they are relatively perfect
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3.

There are two reasons for the prohibition of virtual currency trading by the state:

1. The price fluctuates violently and the consumer protection is lacking:

virtual currency is the proct of network, and the digital information flowing in the network is beyond everyone's control. The code of cyberspace is the basis of the operation of virtual currency, investors can only operate through the front-end interface, seemingly "control" the virtual currency. The operator of the virtual currency service organization may become the actual controller of the virtual currency through the control code

bitcoin and other so-called "virtual currencies" lack a clear value basis, the market is full of speculative atmosphere, the price fluctuates violently, and investors blindly follow suit, which is easy to cause capital losses

2. Evade supervision and become the "accomplice" of criminal activities:

bitcoin is popular as a payment tool in the so-called "dark web" world“ The "dark net" is full of all kinds of serious criminal activities. One of the original intentions of the invention of bitcoin is to evade regulation. It has the characteristics of anonymity and convenient cross-border flow, and has become the preferred tool of "underground economy"

the existence of bitcoin and exchanges and other instrial chains has constructed a illegal financial market for asset transfer and financing in addition to legal currency, increased the difficulty of regulatory authorities in managing financial security and stability, and promoted regulatory arbitrage and financial crimes. The risks and social security risks it brings to the financial market are far higher than its innovative value

extended information

virtual currency transactions are not protected by law:

according to the notice on preventing bitcoin risks issued by the people's Bank of China and other departments on December 3, 2013 and the announcement on preventing financing risks of token issuance issued by seven ministries and commissions including the people's Bank of China on September 4, 2017, virtual currency is not issued by monetary authorities, It is not a real currency because it does not have the monetary attributes of legal compensation and compulsion

in terms of nature, virtual currency should be a specific virtual commodity, which does not have the same legal status as currency, and can not and should not be used as currency in the market. Although citizens' investment and trading in other virtual currencies are personal freedom, they can not be protected by law

4. It's possible, but for now, the government hasn't banned it

bitcoin and other virtual currencies exist legally in China. In the 2013 bitcoin risk notice, the central bank and other five ministries and commissions clearly defined bitcoin as a special Internet commodity. People can buy and sell it freely at their own risk. Financial institutions do not have to provide bitcoin related services, denying its monetary attribute. Zhou Xiaochuan, the governor of the central bank, compares bitcoin to a tradable asset like a stamp< Most of the major countries in the world take a cold attitude towards virtual currency. There are several possibilities for countries to ban virtual currency:

1
2. The well-known weaknesses and defects of virtual currency can not be overcome in a certain period of time
3. The government can't stand the use of virtual currency in money laundering and other illegal activities

since 2013, the popular virtual currencies are bitcoin, Fuyuan coin, Laite coin, doggy coin, Ruibo coin, Yuanbao coin and so on.

5.

blockchain instry term, which is a common way to raise funds for cryptocurrency / blockchain projects. Early participants can get the cryptocurrency generated initially as a return

question 2: because ICO is an unauthorized illegal public financing behavior, it is prohibited by the state

prohibit ICO from issuing according to the announcement: at 3:00 p.m. on September 4, 2017, the people's Bank of China led seven ministries and commissions, including the Internet Information Office, the Ministry of instry and information technology, the State Administration for Instry and commerce, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the China Insurance Regulatory Commission, to issue the announcement on preventing the financing risk of token issuance

the announcement points out that token issuance financing is essentially an unauthorized illegal public financing behavior, which requires that all kinds of token issuance financing activities should be stopped immediately from the date of the announcement, and at the same time, organizations and indivials who have completed token issuance financing should make arrangements such as refund

extended information:

at 3 p.m. on September 4, 2017, the notice on preventing the financing risk of token issuance is as follows:

first, accurately understand the essential attribute of token issuance financing activities

token issuance financing refers to the financing subject raising bitcoin from investors through illegal sale and circulation of tokens In essence, the so-called "virtual currency" such as ether currency is a kind of unauthorized illegal public financing behavior, which is suspected of illegal selling token tickets, illegal issuing securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal criminal activities

Relevant departments will closely monitor relevant developments, strengthen cooperation with judicial departments and local governments, strictly enforce the law in accordance with the current working mechanism, and resolutely deal with market chaos. If suspected crimes are found, they will be transferred to judicial organs

the token or "virtual currency" used in token issuance financing is not issued by the monetary authority, has no monetary attributes such as legal compensation and compulsion, does not have the same legal status as currency, and cannot and should not be used as currency in the market

2. No organization or indivial shall illegally engage in token issuance and financing activities

from the date of this announcement, all kinds of token issuance and financing activities shall be stopped immediately. Organizations and indivials that have completed the token issuance and financing should make arrangements such as refund, reasonably protect the rights and interests of investors, and properly handle risks. Relevant departments will seriously investigate and deal with the activities of token issuance and financing that refuse to stop and the illegal behaviors in completed token issuance and financing projects

7. Strict law enforcement, found suspected crimes, will be transferred to judicial organs
the financing currency is suspected of illegal fund-raising
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8. ICO (abbreviated as initial coin offering) is the concept of initial public offering (IPO) derived from the stock market. It is the behavior of blockchain project to issue token for the first time and raise bitcoin, Ethereum and other general digital currencies
the above is the definition given by the central bank
C means coin, which originally means coin
to put it bluntly, it is to raise money in disguised form by issuing virtual currency tokens and other things.

9. At the beginning of 1994, the three mavroji brothers, a Russian resident, announced the establishment of an investment fund called mmm, claiming that their goal was to build it into the largest investment fund in Russia. The company assures the public that as long as it invests $100 in mmm, it can recover $500 in half a year. In addition, it has a year-end return of up to 400%! Under such a call, about 15 million people in Russia bought the shares of MMM company. Due to the participation of a large number of shareholders, the share price of MMM investment fund soared from about $1 to $54<

MMM fund raising is another typical pyramid investment fraud. Its operation procere is: after the company sponsors draw up the financing plan, they are committed to tempting investors to participate in the shares, and when the accumulation of funds reaches a certain amount, they begin to use these funds to provide returns to investors, so the cycle is endless. As long as the raised capital reaches a certain scale and can be recycled continuously, it can meet the daily cashing and year-end dividend. However, once investors' confidence shakes, stop investing, sell stocks or ask for cash, the pyramid will collapse, and those shareholders who participate in the investment later will lose their money and become victims of fraud
different from what happened in Albania, the MMM in Russia did not die of oil shortage, but "accidental death". If the Russian federal government had not worried that the development of MMM like funds would have impacted Russian commercial banks and affected the savings rate, mmm would have "survived" longer. On July 22, 1994, the Russian government suddenly made a public statement expressing doubts about the high rate of return of MMM. This news almost immediately led to the "melting" of this appalling "iceberg" in a week.

10. According to the registration instructions, it is a promise that after becoming a service partner, there is no need to register locally or employ employees before becoming a service partner.