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Notice on Guarding against Risks of Financing Activities in the Name of ICO


Recently, there has been a rapid rise of projects which raise funds in the name of ICO (Initial Coin Offerings), upsetting social and economic order and creating relatively large potential risks. To protect the legitimate rights and interests of the public, we hereby caution investors on the following matters:

1. With the help of misleading advertising, certain domestic and foreign institutions engage in financing activities under the cover of ICO without any form of licensing, which may involve actions such as fraud, illegal securities, and illegal financing. Investors should be aware of such risks and exercise caution to avoid being deceived. Any individual aware of any action violating laws and regulations should immediately report to the police.

2. Investment in ICO projects is prone to relatively large risks due to their unclear delineation of assets, lack of investor suitability evaluation, and severely insufficient information disclosure. Investors should evaluate and discern such projects with discretion and bear related risks on their own terms.

3. Members of NIFA should take the initiative to enhance self-regulation and guard against financial activities in violation of laws and regulations.

National Internet Finance Association of China

August 30th, 2017

Translator: HUANG Chengxuan   Proofreader: LI Xia

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