The trend in the market right now has a lot to do with cryptocurrency and digital money. One of the more popular versions of this is known as bitcoin. But like any new trend, there are always people waiting in the wings to exploit the popularity in exchange for their own unethical gain. Such is the case for cryptocurrency through what is known as an initial coin offering or ICO.
In China, the finance association has issued a warning to would be investors. In a statement, the organization said that ICO’s may be misleading investors by using faulty information and verbiage about raising money for a company. The National Internet Finance Association of China is telling investors to move ahead with “extreme caution” at this point.
The organization has also said that it intends to move forward with more strict constraints on the matter. “China Internet Finance Association members should take the initiative to strengthen self-discipline, to resist illegal financial behavior.”
This is not coming as a surprise to many who are in the know on the topic. The central bank in china already started drafting regulations that could actually suspend ICO activity entirely. The draft of the measures for ICO’s was put out earlier in August and suggests that ICO could actually be classified as illegal.
The ICO website ICOINFO announced a temporary suspension due to uncertainty over regulations. The effects of the actions that the National Internet Finance Association of China are already starting to be realized.