People’s Bank of China curbs ‘airdrops’
The People’s Bank of China is expected to strengthen its crackdown on cryptocurrency related products. The central bank’s financial stability report for 2018 indicated that it is giving more emphasis on restriction on ‘airdrops’ which the bank said is a disguised form of initial coin offerings, or ICOs. Reiterating that ICOs are illegal in the country, citing risks associated with them, the report highlighted the fact that these are prone to ending up as scams and pyramid schemes in guise of fundraising for startups. It stated that the illegal airdrops are evasion of the ban on ICOs and pointed out that the airdrops are earmarking token reserves and that the operators are using them as speculative instruments which are manipulated for their own profit.