China Now Has a Way for the Public to Report Illegal Token Sales

A Chinese self-regulatory association is working to assist government agencies in cracking down on illegal token sales with a new reporting option.

AccessTimeIconAug 28, 2018 at 9:30 a.m. UTC
Updated Sep 13, 2021 at 8:19 a.m. UTC

A Chinese self-regulatory association is working to assist government agencies in cracking down on illegal initial coin offerings (ICOs).

The China National Internet Finance Association (NIFA), a self-regulatory organization founded by the People's Bank of China (PBoC), has added a "token sales" category to its platform that allows the public to report on potentially illegal financial activities.

NIFA currently operates an online portal where individuals can file complaints or reports on suspect financial activities. Areas that have been on the association's radar to date include peer-to-peer lending, internet insurance, equity financing and internet payments.

"This platform is responsible for gathering reports and complaints regarding internet financial activities and transferring to relevant government agencies, which will take on further actions according to existing regulations upon receiving the reports," NIFA states on its website.

Now the association has added "token sales" as a reporting option, whereby Chinese residents are able to file complaints on crypto-related activities defined as illegal by the PBoC in its ICO and crypto trading ban last year.

The activities listed on NIFA's website include operating an exchange for fiat-to-crypto and crypto-to-crypto trading, directly or indirectly providing registration, trading, clearing and settlement services for token sales, and offering insurance services for crypto-related businesses.

The news comes amid continuing efforts by Chinese regulatory agencies to clamp down on cryptocurrency trading and ICOs.

Last week, five high-level financial regulators in China issued a statement warning the public against overseas ICOs that solicit investment from domestic investors using nascent mechanisms such as "initial exchange offerings" and "initial fork offerings."

Chinese internet giants including Baidu, Alibaba and Tencent are also cooperating with regulators in efforts to block over-the-counter crypto trading via payments applications and are censoring online forums that distribute relevant information.

Man with megaphone image via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC