Why is ICO banned (is ICO legal in China in 2020)

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Why is ICO prohibited? Why is ICO prohibited On March 10, 2018, at the “China Corporate Social Responsibility Seminar” held at the Hangzhou Internet Notary Office, Mu Changchun, the director of the Financial Research Institute of the Central Bank, stated that “currently, China has relatively strict regulations on virtual currencies”, and he mentioned the provisions and limitations of Article 13 of the Capital Market Law on ICO Regarding the prohibition of issuing securities, fund tokens, and other forms of corporate financing, it is actually a punitive measure against ICO. However, according to legal regulations, ICO is not an illegal and irregular investment project. Due to its non-compliance with relevant policy requirements, it is considered an illegal act of public financing. So ICO is a way to deceive investors Is ICO legal in China in 2020

On December 4, 2020, seven ministries and commissions, including the People’s Bank of China, jointly issued the Tips on Preventing the Risk of Illegal Fund Raising in the Name of “Virtual Currency” and “Blockchain”, which severely cracked down on the financing of ICO (initial public offering) and Initial coin offering. The Notice requires that no organization or individual shall carry out activities related to ICO According to relevant national regulations, no institution or individual is allowed to engage in initial public offerings or fundraising activities within China. During this period, investors are not allowed to subscribe, participate in or sell securities, or provide other financial services. ICO is a form of behavior prohibited by law in China. In June 2019, the “Notice on Preventing Bitcoin Risks” led by the central bank stated that “there are currently no formal regulations for the establishment and implementation of ICOs in China