Xinhua Reported: Crypto Investors Detours China ICO Ban
According to an article published by Xinhua News agency September 26, the crypto investors and companies circumvent China ICO(Initial Coin Offering) Ban.
Allegedly it has been reported that the Chinese crypto investors are probing middle-men agencies on Wechat to assist their transactions in order to surpass China’s ICO Ban.
After the crypto regulations in China have become more austere, the domestic currency exchanges tried to register overseas but faced a shut down within the country but they were still able to grant services to their users.
China’s ICO ban has given birth to numerous brokerage industries that provide services to Chinese investors who are seeking to invest in ICO’s.
Brokerage industries promote ICOs on WeChat:
These brokerage industries are allegedly advertising their services via social networking apps like WeChat and are charging money for providing the service.
A Hong-Kong based marketing firm –Dragonsocial specifically assists ICO’s to advertise their token sales to the investors. Cao Ming Xiu-Operations officer at Dragonsocial defends the authenticity of their services by stating that-
“Many times in China people promulgated adverts with big Wechat groups. But that is against the Chinese regulatory framework, and we don’t do that. We actually do community-building. We basically discuss ICO’s in groups.”
Cao claims that 20,000 of the Wechat groups are engaged in the discussion of the ICOs that exist in China.
He further added:
Some of the groups in Wechat includes hundreds of people out of which some of them are our employees who lead the conversations. And that’s how we try to discuss new projects with all the members that are present in the group.
Emil Chan-The vice-president of Hong Kong Blockchain society believes-
“There is no way we can ban all the brokerage agencies, if we’ll ban one, they will set up another. People will take risks if they want to gain profits.”