Update: The People’s Bank of China has said today that initial coin offerings (ICOs) and any related fundraising activities are illegal (in Chinese). The regulator said in its notice that all activity must stop. The bank has conducted investigations into the practice and found it to disturb financial order.

China’s ICO sector has come under strict supervision after months of breakneck growth. After an announcement by the National Internet Finance Association of China and subsequent reports of investigations by the China Securities Regulatory Commission, the country’s largest platforms including Bitcoin China’s ICOCOIN and ICOINFO are announcing the suspension of operations.

The platforms provide ways for users to administer initial coin offerings (ICOs) using cryptocurrencies as a way of crowdfunding for an organization or investment in a project. Such platforms have proved highly popular in China in part because they provide another class of investment opportunity in a country where options are slim.

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Frank Hersey

Frank Hersey is a Beijing-based tech reporter who's been coming to China since 2001. He tries to go beyond the headlines to explain the context and impact of developments in China's tech sector. Get in...