Regulators in China are discussing a plan to possibly suspend all initial coin offerings (ICOs) within the country, reports say.
According to Tencent Finance, regulators proposed an action plan in a meeting on August 18 hosted by the financial market department of the People's Bank of China (PBoC), the country's central bank. Officials from China's insurance, securities and bank regulatory body also attended.
Quoting multiple anonymous source "close to the regulators," Tencent reported that authorities are discussing a plan that would include putting limits on the size of ICOs, strengthening the information disclosure, supervising tokens and publishing investment risk alerts.
Further, should there be significant market risk, the report indicates regulators could possibly suspend all ICOs.
While that might sound extreme, it's worth noting that the PBoC suspended domestic exchange trading for months earlier this year, effectively taking the world's largest market offline overnight over concerns about customer safety.
Titled "Order on banning Illegal financial institutions and illegal financial business activities," the translated text reads:
PBoC image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.