Hainan Province financial regulators warn investors about illegal token platforms

After China’s New Wave of Cryptocurrency Regulatory Measures Financial regulators in Hainan, the country’s smallest province, have warned of illegal fundraising plans related to cryptocurrencies or blockchain technology.

According to local reports, the Hainan branch of the People’s Bank of China, the country’s central bank and local financial regulator were some of the regulators that did the Display.

Regulators warned investors about illegal fundraising campaigns that use digital currencies or blockchain technology as promotional materials, stating that illegal token issuance and funding activities are prohibited.

Hainan Province financial regulators warn investors about illegal token platforms
Hainan Province financial regulators warn investors about illegal token platforms

“The so-called token financing platforms will not be able to participate in the exchange between legal tender and tokens or virtual currencies”, Regulators noted what, in a nutshell, these token funding platforms cannot be used as fiat-to-crypto gateways. Such platforms are also prohibited from buying or selling tokens or acting as an intermediary in buying or selling tokens, the report said.

The warning also includes financial and payment institutions, prohibit them “directly or indirectly” [prestar] Digital currency related services “.

In May, The China Internet Finance Association, China Banking Association, and China Payments and Clearing Association have issued a joint statement on the risks of cryptocurrency trading.

After massive power outages in the Chinese mining center of Xinjiang in mid-April, the Beijing authorities focused on the power consumption of crypto mining farms. Several major Bitcoin (BTC) miners have since announced their plans to cease operations in China.

Notice from regulators on stricter supervision of bitcoin mining coincided with Elon Musk’s change of mind on bitcoin payments for Tesla vehicle purchases, which resulted in a crash in BTC price and the cryptocurrency market in general. The rise in cryptocurrency volatility sparked a number of warnings from central banks and financial institutions around the world.

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