China Bans Initial Coin Offerings, HK Tightens Regulations

The Chinese central bank has announced that ICO fundraising must be stopped immediately and refunds paid to all investors in completed ICOs, Bloomberg said.

Digital token financing and trading platforms cannot convert their currency into government-backed currencies, digital tokens can't be used as currency on the market, and banks are forbidden from offering services to ICOs, Bloomberg said.

Digital tokens can take the form of virtual currency such as ether or bitcoin, but the tokens are also being marketed as investment opportunities. The tokens can represent ownership of assets of property, or over a debt owed by the seller.

These investment tokens are typically sold to consumers in exchange for virtual currency or cash, with details of the business proposal set out in a 'white paper' published online.