Following China’s major regulatory crackdown on cryptocurrencies, financial regulators in Hainan, the smallest province in the country, reportedly issued a warning against crypto or blockchain-themed illegal fundraising schemes.
According to local reports, the Hainan branch of the People’s Bank of China, the central bank of the country, and the local financial supervision authority were among the regulators who made the announcement.
Regulators warned investors about illegal fundraising campaigns that use virtual currency or blockchain as promotion material, stating that illicit token issuance and financing activities are forbidden.
“Any so-called token financing platform shall not engage in the business of exchange between legal tender and tokens or virtual currencies,” regulators noted, simply meaning those token financing platforms can’t be used as fiat-to-crypto gateways. It’s also forbidden for said platforms to buy, sell or act as an intermediary to buy or sell tokens, the report says.
The warning also encompasses financial and payment institutions, banning them from “directly or indirectly [providing] services