PBoC Advisor: Government Should Mandate ICO Disclosure Standards

Regulators must mandate a standard for information disclosure amidst the recent spate of ICOs, says an advisor to China's central bank.

AccessTimeIconJul 7, 2017 at 3:35 p.m. UTC
Updated Dec 11, 2022 at 1:58 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Regulators should mandate information disclosure standards for initial coin offerings (ICOs), an advisor to China's central bank argued this week.

Sheng Songcheng, an advisor to the People's Bank of China, spoke with business journal  Yicai Globalhttps://www.yicaiglobal.com/news/investors-should-be-reasonably-cautious-towards-initial-coil-offerings-pboc-counselor-says in an interview published on July 7. Sheng argued that prospective investors should be cautious of ICOs – through which cryptographic tokens are sold and distributed via a blockchain – and called for "moderate regulation" of the activity.

As part of that process, he argued, "information disclosure requirements and moderate regulation for ICO projects must be introduced", according to the journal.

That said, he also expressed support for an environment that promotes innovation technology uses, with the government making public both the risks and opportunities and involved.

Sheng said in the interview:

"Only time and market dynamics will tell how popular blockchain technologies and ICOs will become in the future. Moderate regulation should be applied, but it should not stifle innovation."

His comments come months after the PBoC began to play a more active role in policing the country's digital currency space, a policy shift that led to a months-long withdrawal freeze at several leading China-based exchanges. Withdrawals at those markets were reactivated in late May.

At the same time, the central bank has been investigating the launch of a digital currency of its own. Yao Qian, who works in the PBoC's technology department, recently detailed some of the concepts the bank is exploring.

Image via Shutterstock

Disclosure

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

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.