Companines and Investors Evading Chinese ICO Ban
Xinhua Hua Agency recently published an investigation report on China's Initial Coin Offering (ICO) ban. The investigation report says that there is a way around for the companies and investors to bypass the ICO ban in China.
The report shows that the companies have been able to find different ways to conduct the ICOs even after the strict rules framed by the Chinese government on illegal ICO financing. There are still a few ICO projects in China which run under the cover of "Foreign shell" companies, among other ways.
One of the insider sources of the news agency says "It seems that the entire process platform does not violate the relevant policies, but the over-the-counter transaction[s] [have] actually opened a hole in the ICO token transaction."
After China's strict rules on ICOs and virtual currencies to stop the various scams happening in the name of crypto, China's local cryptocurrency exchanges shifted their operations to overseas countries. The companies did shut down their services in China, however, the domestic users can still register and trade on the exchanges without any issues.
The investigation report highlights Malta explicitly as the foreign country for these ICO projects because of the growing usage of Chinese language versions in the websites of Malta-based companies. The report also says that these companies are making use of social messaging services like Telegram to form groups to coordinate with the domestic China users. One of the insider sources of the news agency says "It seems that the entire process platform does not violate the relevant policies, but the over-the-counter transaction[s] [have] actually opened a hole in the ICO token transaction."
China banned crypto related trading plans in last year September.
The government authorities have even blocked internet access to the ICO project companies inside China, but still, the companies are finding a way around by using Virtual Private Networks. The News Agency also says that there are a few self-media public companies which are involved in promoting ICO projects to China investors mainly.
China banned crypto related trading plans in last year September. After that, now the People's Bank of China released a document on its official website which states that it will continue to guard against ICOs and Crypto-related investments.