China Bans Initial Coin Offerings Over Crypto Currency Fraud Fears
TechRadar has reported that Chinese regulators are preparing to begin a new campaign with the aim of placing the country’s initial coin offerings (ICOs) under high scrutiny by officials to prevent fraud and illegal fundraising. An initial coin offering is essentially an unregulated way to raise funds for a new cryptocurrency venture. Through this process, startups and organisations are able to bypass the rigorous and highly regulated process through which banks and venture capitalists raise capital. During an ICO campaign, a percentage of a new cryptocurrency is sold to early backers in exchange for either cash or other more well-established cryptocurrencies with Bitcoin being a popular favorite.
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