China Adds Crypto Assets as Illegal Fundraising Tool

The Supreme People's Court, China's highest court, announced a change in its interpretation of the law on fundraising on April 24, adding crypto assets (virtual currencies) as an illegal fundraising method.

The Supreme People's Court said that crypto-asset transactions used for fundraising could be prosecuted, and set penalties according to the amount of money raised through the transactions.

Raising funds using digital currencies is already illegal in China, which banned crypto-asset fundraising in 2017 amid growing demand around the world for fundraising through initial coin offerings (ICOs, a way for companies and products to raise money by issuing and selling their own crypto-assets) This is the first time the law has been enforced.