Peo­ple’s Bank of China curbs ‘air­drops’

Banking Frontiers - - News -

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.

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