The People's Bank Of China Clampdown On Crypto Airdrops

The head of the Chinese financial institution, the People’s Bank Of China is bringing down its hammer on crypto airdrop, insisting that it is Initial Coin Offering in “disguise” and maintained its stance that the process is against the financial regulations in the country and as such could not be tolerated in the country.
The report by the republic’s central bank revealed that the airdrops are trying their best to evade all the regulations guiding public token sale in the country. The bank revealed that the crypto airdrops often capitalize on the speculation going on in the market to inflate the value of assets and derive their profit from it.
The anti-ICO stance of the bank and the Chinese government, in general, were also reiterated, with the government insisting that ICO’s are nothing but a fraudulent way of raising money while insisting that such practices will have nowhere to stay in China.
The report also took a swipe at crypto firms who relocated abroad but use foreign agents to invest on behalf of local clients in the country and also warn against fraudulent cryptocurrency projects who masks as blockchain investments.
The report by the central bank is part of a larger struggle by the Chinese government to wipe out any form of fraudulent activities in the country’s cryptocurrency market, which is quite notorious for its various degrees of the fraudulent crypto project which applies various forms of strategy to evade the stringent regulations and swindle unsuspecting investors.
ICO’s have come under the microscope throughout this year, with many notable crypto figures adding their voice against the many fraudulent ICO’s in the crypto market. One of the notable names to warn against initial fraudulent offerings is Ethereum’s co-founder Joseph Lubin.
The crypto enthusiast said that most of the copycat companies issuing tokens were out of China and that he fully supports the measures taken by the Chinese government to rid the country of the many questionable ICOs in circulation.
The bank further warns that despite its many efforts to rid the country of crypto token issuance, the initiative continues to gain momentum and rise in number and therefore urge financial regulators in the country to be on the lookout, while urging the international community to help the country fight the menace and help protect investors in the country.

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