China’s government has a real dislike for cryptocurrencies and initial coin offerings. It banned domestic ICOs last year and this year put the kibosh on websites related to ICOs and crypto trading. It tolerated blockchain technology, until it was used to evade censorship rules. Now China seems to be cracking down on that, too.
What’s next? Airdrops, the free distribution of cryptocurrencies or tokens that some companies use to spur interest in their projects.
The bank said companies are evading the ICO ban by giving away free tokens while keeping a large supply on crypto exchanges, where speculation can increase prices and lead to profits for the companies.
The bank warned it will continue to be vigilant and track these and other developments in the cryptocurrency industry, working with other organizations to “protect investors.”