China’s central bank plans to ban airdrop

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2 weeks ago
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People’s Bank of China (PBoC), which functions as the Central Bank, plans to ban Airdrop – the free distribution of new tokens. The bank said this in its report on financial stability for 2018, noting that the number of airplanes is growing along with the “disguised” ICO.

The report notes that some Chinese crypto companies re-register abroad and use agents to attract investors from China. Other projects do not conduct public sales of tokens, but distribute free coins while keeping reserves for themselves, and then speculate with their price in the secondary market in order to extract benefits.

According to PBoC statistics, 65 ICOs took place in China in 2017, in which more than 105 thousand people participated. During the tokensails, it was possible to collect a total of $377 million, which is 20% of global values ​​for the same period.

The bank said it was necessary to continue the “extremely vigilant” policy and monitor the cryptobranch to protect investors.

Earlier, the Arbitration Court of China ruled that, despite the Central Bank’s ban on trading in cryptocurrencies paired with the Chinese yuan, Bitcoin should still be legally protected as property of economic value.

In October, the Department of State Chancellery of China for Information Responsible for Internet Censorship, drafted a law establishing the rules for regulating the activities of information blockchain services providers in the country.