The Chinese government is once again targeting cryptocurrencies, as the People’s Bank of China (PBoC) just issued a public notice warning investors of the risks inherent to cryptocurrencies and ICOs.
In the report, the PBoC emphasizes that cryptocurrencies seriously disrupt economic, financial and social order, while ICOs are fraudulent fundraising methods that constitute criminal activity.
The PBoC notes that since it began enforcing its crypto ban last year, China’s global share of domestic virtual currency transactions has dropped from an initial value of 90% to less than 5%. The bank asserts that this ban has protected China from the market downside of the virtual currency bubble and that its action has been highly “recognized by the community.”
The report also references the most recent push by the Chinese government to further clamp down on cryptocurrency activities, including the banning of over 120 offshore exchanges and pressuring companies to more strictly enforce regulations.
More: PBoC Notice
Photo: Julien GONG Min / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.