According to a recent report published by the investigating news agency from China shows that despite the government’s efforts to introduce banon illegal ICO financing investorscouldcircumvent the law byemploying aforeign shell company, amongdifferentprospects.
Xinhua reports thatonceChina’s crypto related lawsbecameadditionally strict, domestic virtual currency exchanges went overseas for registration —whereasshowingto beclosedwithinthe country —but however, provided trading services to the native customers.
The agency specifically mentions Malta as a chief destination ofselection, noting the existence of Chinese language versions of thecurrentlyMalta-basedfirms. Xinhuaadditionallymentionedthe employmentof electronic messaginggroupsto coordinate with domestic Chinese users.
The News agency while quoting the ‘Insider Source’ added:
“Itappearsthatthe current processdoesn’tviolate the relevant policies,howeverthe over-the-counterdealings havetrulyopened a holewithin theICO token transaction.”
While authorities havetriedto banwebaccess to the ICO’s within China, Xinhua statesthat almost allmeasurescould besubverted byemploying aVirtual Personal Network (VPN).
Xinhuaadditionallyclaims that thereare“self-media public companies” that playa jobin advertising and promoting ICO within the country.
China’s1stoutright ban of ICOs was enacted a yearago in2017. Earlier this month, the People’s Bank of Chinarevealedsome newdocument on its officialweb site, stating thatit’dstillguard against ICO and cryptocurrency-relatedcommercialismrisks.