China’s recent ban on initial coin offering (ICO), a cross-between crowdfunding and initial public offering, has forced local cryptocurrency exchanges into stricter self-scrutiny about their supervision mechanisms.

After months of breakneck development, the ICO sector received a severe blow this Monday when Chinese authorities announced a ban on all related fundraising activities, citing possible financial scam and massive fraud. In addition, all completed ICOs must liquidate and refund investors, according to the rule.

Of the total 60 platforms that have held token offering-related activities inside China, over half have launched the liquidation process or suspended the ICO services upon the news, local media reported. However, the ICO ban seems to be just a beginning for another wave of stricter regulations from Beijing, which reportedly intends to further regulate the crypto economy.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.