The people’s Bank of China (PBoC) acting as the country’s Central Bank, is going to take steps to prevent the conduct airdrop campaigns, free distribution of tokens to a large number of wallets.
About the intentions of the Central Bank, it became clear from the report on the financial condition for the year 2018, which the organization released last Friday. It PBoC says that the number of “disguised” primary offering coins (ICO), including airdrop campaigns, continues to grow despite the restrictions of the current legislation. According to the report, some cryptocurrency companies are shifting their activities abroad and used agents to allow them to invest in the cryptocurrency behalf of Chinese investors.
Other projects do not conduct the placement of the tokens directly, but give them away for free, leaving only part of the proposal. The Bank believes that then these companies to artificially inflate the value of the coins by swiping speculation on the secondary market. The document cited statistics according to which by July of this year, China has organized 65 of the ICO campaigns, and only five of them were completed before 2017, when entered into force a ban of the Central Bank to collect the money this way. More than 105 thousand people took part in the campaign by purchasing tokens for a total of about 2.6 billion yuan (or $377,3 million). At least 20% of this amount was collected over the last year.
According to the PBoC statement, the Bank intends to remain vigilant and to join efforts with other state organizations to control of the crypto sphere and to protect investors. In June, the Bank issued tough statements against “disguised” ICO and recalled that trade cryptocurrency assets are forbidden in the country.
Despite the negative attitude towards cryptocurrencies, the Chinese authorities see potential to use the blockchain technology. So in June, the PBoC introduced the blockchain is a system for creating digital receipts instead of the physical. In General, the Central Bank of China for the year was filed more than 40 patent applications related to distributed registries.