China ICO regulation

Recently, the domestic large numbers through the issuance of tokens in the form of activities including initial token issuance (ICO) for financing, speculation prevalent, suspected of engaging in illegal financial activities, seriously disrupting the economic and financial order. In order to implement the national financial work conference, to protect the legitimate rights and interests of investors, preventing and defusing financial risks, according to "People's Republic of China People's Bank Law", "People's Republic of China Commercial Bank Law", "Securities Law of People's Republic of China", "Chinese people Republic security law, "" People's Republic of China telecommunications regulations "," illegal financial institutions and illegal financial business activities banned "and other laws and regulations, the relevant matters are announced as follows:
First, an accurate understanding of the nature of property tokens issued financing activities
Tokens issued by the main financing means financing illegal sale of tokens, circulation, raising bitcoin, coins and other Ethernet-called "virtual currency" to investors, in essence, is an unapproved public financing of illegal behavior, suspected of illegal sale token tickets, illegal issuance of securities and illegal fund-raising, financial fraud, pyramid schemes and other criminal activities. Authorities will closely monitor relevant developments, strengthening synergies with the work of the judiciary and local government, in accordance with the existing mechanism, strict law enforcement, and resolutely control the market chaos. Found that the alleged crime, the judicial organs.
Token issuance of financing used tokens or "virtual money" not by monetary authorities issue, does not have the legal tender of the mandatory attributes such as currency, does not have legal status and monetary equivalent, can not and should not be used as currency in circulation in the market use.
Second, any organization or individual may engage in illegal financing activities Issue of tokens
Of the date of this announcement, various tokens issued financing activities should be stopped immediately. Completed tokens issued to finance organizations and individuals should make arrangements for repaying and other reasonable investor protection, proper disposal risks. The relevant departments will be severely punished according to the law refuses to stop issuance of tokens financing and illegal activities token issuance of financing the project has been completed in.
Third, strengthen the management and financing tokens trading platform
Of the date of this announcement, any so-called tokens financing transaction platform shall not engage in legal tender and tokens, a "virtual currency" exchange traffic between each other, may not be sold or used as a central counterparty trading tokens or "virtual currency" shall not provide pricing information and other intermediary services for tokens or "virtual currency."
For the existence of illegal issue tokens financing trading platform, financial management will draw the telecommunication administration to close down its web platform and mobile APP, to draw the net in the letter sector of mobile APP do the next frame disposal in the app store, and brought the business administration department according to the law revoke its business license.
Fourth, non-bank financial institutions and payment institutions may not conduct related to token issuance of business financing transactions
Financial institutions and non-bank payment institution shall not, directly or indirectly account for the token issuance of financing and the "virtual currency" open, registration, trading, clearing, settlement and other products or services may not be covered with the token and a "virtual currency" Related insurance business or tokens and "virtual money" into the insurance coverage. Non-bank financial institutions and payment institutions made modern currency issuer financing transactions illegal clues, it shall promptly report to the authorities.
Fifth, the public should be highly alert to potential risks token issuance and financing transactions
The existence of multiple risk token issuance and financing transactions, including the risk of false assets, business failure risk, investment risk speculation, investors should bear the investment risk, the majority of investors want to guard against fraud.
All kinds of use of the name "money" to carry out illegal financial activities, the public should strengthen risk prevention awareness and ability to identify relevant and timely reporting illegal clues.
Sixth, give full play to the role of industry self-regulatory organizations
Various financial industry organizations should make policy interpretation, consciously resist the urge member units with the token issuance of financing transactions and "virtual money" related to illegal financial activities, away from the chaos of the market, enhance investor education, and jointly safeguard the normal financial order.