Recently, the Chinese media known as Voice of China has accused the efforts made by the cryptocurrency exchanges as well as initial coin offerings, as they have continued their operations despite the 2017’s crackdown in the central government.
State Media starts to criticize the cryptocurrency exchanges
As per the reports of Voice of China on September 2017, commissions of central bank along with seven ministries have declared the issues of coinage offerings, which require the institution not to engage in the conversation between tokens, currency and virtual currency as well.
Reports said that despite the official ban, organizations are still operating in the field of cryptocurrencies and ought to take advantages of this rising tide regarding the bitcoin. But, this has come up with allegations like china’s cryptocurrency exchange has currently set up some overseas sites as well as continues to provide or access digital currency services to the respective mainland users.
The target of “voice of China” is on Okex
Voice of China pays considerable attention to Okex and accuses that the organization is using the shell firms to obfuscate its offering and operation based on the Chinese unlicensed securities.
According to the report, even after the declaration of national ban OkCoin has transferred all the data regarding the user as well as the digital currency to the respective OkEx exchange, and this was established outside the china. The voice of China has also explained some quote based on the Okex customer’s who still believes that the company is moving overseas and has headquartered in Belize. Apart from this, the team is in Hong Kong and still operates the total organization in Beijing, where most of the users are Chinese.
Numbers of Chinese ICOs are increasing despite the ban
Voice of China has explained that many of the Chinese are operating on a clear basis despite the ban. One of the reports published in September declared that the tokens were authorized as well as illegal for the finance as well. The document has therefore accused many of violating the law by issuing illegal tokens, which are considered as threats to the security and contains fraud schemes and pyramid.
Criticism regarding cryptocurrency
Mr Deng Jianpeng who is the professor at the law school of the central university for nationalities has criticized the flexibility of the global trend called cryptocurrency. He said “one size fits all” and also stated that digital currency has a typical character as well. So, if you are thinking to have a fine-turn, then you shouldn’t allow doing the public offerings. Fraud is not accepted to crack down the laws.