Xinhua News Agency has reported that it sees certain possibilities how to bypass the Initial Coin Offering ban, applied in China, according to its publishing from September 26.
As the agency performed deeper investigation, it found an easy way to circumvent a relatively clear ban of ICOs the government is officially trying to established and apply over its territory. Xinhua News Agency found that there is a possibility to set up a “shell” entity in foreign country to avoid such ban and bear the fruits of such ICO.
As the agency explains, strict approach of China’s government towards any cryptocurrency entities, removing any cryptocurrency exchanges from the country, ended in number of overseas registrations as the owners understood that there is no way to conduct business in inland China. Thus, they can still provide services to their domestic clients.
Thanks to the new legislation and regulation, Malta became the top destination where Chinese companies moved, luring capital from the East Asian economy due to attractive European regulation.
Moreover, Xinhua found that Telegram became a very popular for messaging and coordination of Chinese users. According to one insider sources, Xinhua reported: “It seems that the entire process platform does not violate the relevant policies, but the over-the-counter transactions have actually opened a hole in the ICO token transaction.”
Therefore, according to this report, it seems that Chinese authorities are relatively successful in banning any such activities in Chine, blocking even connections to ICOs through internet, however this can be avoided by the use of a Virtual Personal Network (VPN).
This ban of ICOs was initiated in China one full year ago (September 2017). Nevertheless, despite such information, China’s central bank (PBOC) is still willing to continue in its policy against crypto sector, stating it officially on its website.