Virtual currency offerings banned

Initial coin offerings, raising funds through the launch of token-based virtual currencies, have been banned in China, according to an announcement made by several authorities on Monday.

Analysts said that authorities move to ban ICOs is not surprising given that ICOs, with strong liquidity and great risk exposure, have little positive influence on and relevance to the real economy, and it may be the start of further strengthened regulation over crypto-coin trading in the market.

Through ICOs, fundraisers have created and sold new crypto tokens, such as Ethereum and Litecoin, or Bitcoin's virtual currency peer, to investors.