China closes ICO platforms, forces refunds

China closes ICO platforms, forces refunds

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At least two-thirds of platforms that hosted fundraising in new cryptocurrencies in China have shuttered following a government ban. As of Thursday, 40 of the 60 initial coin offering (ICO) platforms in China have halted their operations, Caixin found. The world of blockchain-backed currency in China was upended on Monday after a cross-agency committee led by the People's Bank of China said ICOs were unauthorized activities rife with fraud. The central bank imposed an immediate ban and required companies that raised funds through ICOs to refund investors. The regulations also barred cryptocurrency fundraising platforms from allowing users to convert tokens to fiat money and vice versa. Refunds have already begun. On Tuesday, the issuer of NEO – a cryptocurrency with a market capitalization of over $1 billion by Thursday morning – said it would accept refund applications until Oct. 17 and return the amount of bitcoin that was originally invested.