China tightens legal powers over token sales
by: Dynasty GI2022-03-02
In another move to restrict crypto trading, the Chinese government announced new powers to jail people found guilty of raising funds via token sales.
In a ruling by the country’s highest court, the raising of money from the public through ‘virtual currency’ is now illegal. Under the new interpretation, those found guilty can be sentenced to up to 10 years in jail, depending on the amount raised. China started a more aggressive stance against cryptos in 2021, leading to its central bank’s decision in September last year to deem all cryptocurrency transactions illegal. It also banned their mining and trading. Since then, bitcoin mining in China reduced considerably which, in turn, helped the US become the world’s largest bitcoin mining country.
"The understanding by China watchers is that Beijing’s regime isn’t necessarily against cryptos; instead, China’s government wants its citizens to adopt its own digital currency so that it can continue to control the market. Only time will tell whether they will succeed."
Remarked the founder and CEO of Dynasty Global, Eduardo Carvalho.