After China banned the cryptocurrency ICO and trade, many have criticized the strict policy of this state in respect of the new financial technologies. However, there is ample evidence that the ban is not implemented fully.
For example, the official news Agency of China “Xinhua” reports that local investors can still buy ICO-tokens via cryptocurrency exchanges:
After the ban ICO the cost of basic cryptocurrency fell by more than 70%. However, Chinese investors can easily buy ICO-tokens for the yuan to exchange them for bitcoins or USDT via OTC trading platform [OTC]. Five popular shopping sites including Binance and OKEX available 264 ICO-tokens, almost all (98.8 percent) of which are currently cheaper than during ICO. Chinese “personal information”, such as Wechat play an important role in the manipulation of prices.
Loopholes still exist. China’s Central Bank gave the companies policy not to engage in cryptocurrency and ICO, but the government has not released any official statements. Therefore, this sector cannot be considered illegal. The lack of clear legal norms allows many ICO to manipulate prices and profit from insufficiently informed investors.
“Many ICO projects disguised as blockchain innovation. Actually this is a useless fraudulent coins. The development of blockchain projects without tokens promising and not against the law,” — said the Chairman of the China research center applications of the blockchain.
There are other indications that China has no actual ban on the cryptocurrency. For example, in China you can buy Mclaren car, and in one of the provinces in the country has opened hotel “the Ethereum” accepting the cryptocurrency.