Illegal ICOs have become an issue for China and the participants can now even face death. The ICO phenomenon could have severe consequences for oblivious Chinese investors.
According to the reports, two Chinese exchanges have issued warnings, excusing themselves from involving in any non-bonafide token sales. Though the notice says its useful insight for the potential investor, it clearly and repeatedly emphasises the status of exchange as fully above board in terms of regulation adherence.
An exchange, BTC38 said it “will not list any newly-issued ICO assets” even if it appears they have been classified as legitimate.
Yunbi has decided to check on projects claiming partnership with it, none of which is true. “Recently, the ICO market is extremely heated, some of the ICO projects use "Collaborate with YUNBI" to advertise their projects which seriously misleads the investors,”
The illegal ICOs that are strictly not adhering to the China’s finance law can lead to death sentences for both investors and ICO organisers being the potential target.