Joining the growing anti-crypto chorus in China, regulators in Hainan province are warning against illegal fundraising using crypto or blockchain. Representatives of the local financial supervision bureau and People’s Bank of China warned would-be investors in such schemes that illicit token issuance and financing activities are illegal.

  • State-backed news outlet the Nanguo Metropolis Daily reported the regulators as saying: “No organization or individual in Hainan Province shall illegally engage in token issuance and financing activities; any so-called token financing platform shall not engage in the business of exchange between legal tender and tokens or ‘virtual currencies’ and shall not buy, sell or act as a central counterparty to buy or sell tokens.”
  • This warning is in line with China’s ban on finance sector businesses offering cryptocurrency services, which was put in place in mid-May due to market volatility. Later that month, Chinese authorities also had harsh words against crypto mining, saying they would crack down on the sector, that led some mining companies to shut down their China operations.
  • In a sign of the enormous impact Chinese regulators have on the global crypto industry, last month’s announcements triggered a massive market-wide sell-off and left crypto businesses within China scrambling to adjust their business practices.