Coin offerings create financial risks: China industry body
Launches of new digital currencies, known as initial coin offerings (ICOs), have shaken up social and economic order, created hidden financial risks, and in some cases may amount to fraud, China's National Internet Finance Association said.
ICO investors should be wary and report any suspected crimes to police, the state-backed association said in the latest sign of growing official concern about ICOs.
On Monday, the financial magazine Caixin reported regulators were preparing new rules on digital coin offerings and may ban them until the rules are in place.
China had seen 65 ICOs and 2.62 billion yuan ($397.19 million) raised from 105,000 individuals, state-run Xinhua reported in July citing data from a government organization that monitors online financial activity.
The rise of coin offerings has “disrupted social and economic order and created relatively large hidden risks”, said the association's announcement, posted on its website on Wednesday.
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