China’s Online Finance Regulator Allows the Public To Report Illegal Token Fundraising

The National Internet Finance Association of China (NIFA), a self-regulatory organization founded by the People’s Bank of China(PBoC), has added a new category— “ token sales”—to its tip-off platform where the public can report any potentially illegal online financial activities.

At present ,the online portal run by the NIFA gives Chinese residents the power to file any complaints on cryptocurrency-related activities which are labeled illegal by Chinese authorities. The activities listed on the website include operating an exchange for fiat-to-token and token-to-token transactions, directly or indirectly providing opening accounts, registration, trading, clearing and settlement services for token sales, and offering insurance services for crypto-related businesses.  

This is the first time for the online financial regulators to label “token sales” as a reporting option.

The NIFA’s tip-off platform, as what it states on its website, is responsible for collecting complaints and reports about the illegal and irregular practices of internet financial companies and transferring them to relevant government agencies after the completion of the preliminary review within 15 working days.

In addition to token sales, the NIFA also allows the public to report other suspicious financial activities such as equity financing, internet insurance  online payments and peer-to-peer lending among others.

The NIFA’s move comes when Chinese authorities and tech giants to escalate clampdown on cryptocurrency trading and ICO activities. Last Friday, China’s top five regulatory agencies  issued a joint statement to warn the public against the illegal fundraising activities in the name of “cryptocurrency” and “blockchain”. Meanwhile, China’s tech trio—Baidu, Tencent and Alibaba— join the government’s latest effort to seek to halt OTC crypto transactions via mobile payment platforms and delete crypto-related content on their online forums.

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