90% of Shanghai ICO projects have been cleared

On the 22nd, it was learned from the Office of the Leading Group for Special Rectification of Internet Financial Risks in Shanghai that the cleanup and rectification of Shanghai's token issuance and financing (ICO), Bitcoin and other virtual currency trading venues has achieved initial results. The relevant token financing (ICO) issuance platforms are actively organizing the liquidation of issued projects, and more than 90% of the issued projects have basically completed the liquidation; relevant Bitcoin and other virtual currency trading platforms have also proposed exit plans and have begun to carry out the liquidation of customer funds and assets.

On September 4, the People's Bank of China and seven other ministries and commissions issued the "Notice on Preventing Risks of Token Issuance and Financing", clarifying that token issuance and financing is essentially an act of illegal public financing without approval, and requiring the immediate cessation of all types of token issuance and financing activities. The Office of the Leading Group for the Special Rectification of National Internet Financial Risks also issued a notice requiring relevant Bitcoin and other virtual currency trading venues to stop opening new accounts, reduce the number of investors and market risks, and formulate exit plans, clarify exit time and customer funds and asset disposal measures.

According to the unified deployment of the state, Shanghai, together with the central financial regulatory authorities in Shanghai, actively investigated the situation, interviewed the senior executives of relevant platforms, and clarified the specific regulatory requirements. Bitcoin China, one of the largest virtual currency trading platforms in China, took the lead in announcing the suspension of new user registration on September 14 and announced the suspension of all trading business on September 30.

At present, the cleanup and rectification of virtual currency trading venues such as ICO and Bitcoin in Shanghai has achieved initial results. So far, there are 17 platforms in Shanghai involved in ICO issuance, Bitcoin and other virtual currency trading businesses. The relevant ICO issuance platforms have announced to stop ICO business, and various virtual currency trading platforms have also announced to stop trading within the specified time, of which 4 platforms have already stopped trading.