According to CCTV television, 17 trading platforms will stop trading in cryptocurrencies in Shanghai
BTCChina, Binance, SZZC, Lhang, ETCWin, Bitekuang, 51SZZC, Hanbiwang, Bitbill, 19800Net, FreeWillex, ICOAGE, 91ICO, ICOrace, ICOfox, ICORaise and ICO17 have publicly announced that they are no longer involved in ICO operations and have proposed plans exit from the market.
According to a report by the National Committee of Experts on Internet Financial Security Technology of China, from January 2017 to July 18, 65 ICO projects were carried out in China, with a total value of 2,616 billion RMB. Before 2017 there were only five completed ICO projects.
On September 4, the People’s Bank of China (PBOC) issued an official statement explaining that ICO is a form of raising public funds that are not yet regulated and thus illegal. The ICO has been called to cease immediately. Later, the Shanghai authorities and PBOC headquarters in Shanghai called for the closure of all digital currency trading platforms by September 30. The government in Shanghai will then oversee the refund to ensure that investors receive funding back.
Over 90 percent of ICO projects have been verified and the funds have been returned. To ensure smooth operation, the top management of these platforms was asked to stay in Shanghai in order to cooperate with the money-backers.
Some investors refuse to return, and one of the main reasons is that the launched ICOs are sold abroad, and investors believe they have the right to own tokens. What’s more, token prices are rising, so investors do not want returns at the same price as when ICO is started. Therefore, regulators from Shanghai explained that the basic principle is to protect the rights and benefits of investors. They are encouraged and platforms for better communication.