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Public Notice of the PBC, CAC, MIIT, SAIC, CBRC, CSRC and CIRC on Preventing Risks

of Fundraising through Coin Offering



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Recently, a large number of fundraisingactivities through issuing tokens including Initial CoinOffering(ICO)have taken place in China,
giving rise to speculation and inviting suspicion of illegal financial activities. These activitieshavedisruptedthe economic and
financial order.To implement the spirit of the National Financial Work Conference, protectthe legitimate rights and interests of
investorsand managefinancial risks, and in accordance with Law of the People's Republic of China on the People's Bank of China, Law of the
People's Republic of China on Commercial Banks, Law of the People's Republic of China on Securities, Law of the People's Republic of China on
Cyber Security, Regulation of the People's Republic of Chinaon Telecommunication, Measures for Banning Illegal Financial Institutions and
Illegal Financial Business and Activities,and other laws and regulations, the relevant matters are hereby announced as follows:

I. The Essential Attributes ofFundraisingThrough Coin Offering

Financing through coin offerings refer to financing bodies raisingvirtualcurrenciessuch as Bitcoin or Ethereumfrom investors through
illegal sales and circulation of crypto currency or tokens. Such offerings, in essence, areunauthorized and illegal public fundraisingand
aresuspected ofinvolving in criminal activitiessuch as illegal selling of tokens, illegal issuance ofsecurities, illegal fundraising,
financial fraud and pyramid schemes. The competent authorities will closely monitorthe related developments, strengthen coordination with
the judicial departments and local governments, strictly enforce the lawand work based onthe current mechanism, and resolutely clamp down
on market irregularities.Any suspected crimes, once identified, will be transferred to judicial department.

The token or virtual currencyused in coin offerings arenot issued bythemonetary authority. Such currency does not
havecharacteristics of moneysuch as legal tender statusand mandatory use, hasno legal statusequivalent to money, andcannot be
circulated or used as currency in the market.

II. No Organizations or Individuals ShallEngage inIllegalFundraisingthrough Coin Offering

From the date of release of thisNotice,fundraisingthrough coin offeringshall be banned immediately. Any individuals or organizations
that have completed fundraisingthrough coin offeringshall make arrangements to return the fundsraised, andto ensurethat the
legitimaterights and interests of the investors are protected andthe risks involved are properly managed. The government departments
concerned willstrictlyinvestigate and address the coin offering activitiesthat have continued despite the ban and the illegal
activitiesin the projects that hadcompleted fundraising.

III. Management ofRelatedPlatformsShallbe Strengthened

From the date of release of this Notice,any so-calledplatform that provide trading and exchange services forcoin offeringshall not
engage in exchange businesses betweenlegal tender andtokenorvirtual currency;or engage in proprietary tradingactivities
ortrading as an central counterpartyof tokens orvirtual currencies;orprovidepricing services or act asinformation
intermediary for tokens or virtual currencies.

As for thetrading platformswith activities that have violatedlaws or regulations, the financial regulatory authoritieswill notify the
administrative department in charge of telecommunicationsto adopt measures such as shutting down its website platform and mobile APP, notify
the administrative departmentsin charge of cyberspaceto removeits mobile APP from the APP store, and notify the business administration
departmenttorevokeits business license.

IVFinancial Institutions and Non-Bank Payment Institutions Shall NotConductBusinesses Related to Coin OfferingFundraising and Trading

Financial institutions and non-bank payment institutions shall not directly or indirectlyprovide product or services such as account
opening, registration, trading, clearing and settlementfor fundraising through coin offering/virtual currencies; or insurebusinesses
related totokens/virtual currenciesor includetokens/virtual currenciesinthe insurance coverage. Once clues of illegal coin
offering fundraisingandtradingis identified, financial institutions and non-bank payment institutionsshall promptly report to the
departments concerned.
Public Notice of the PBC, CAC, MIIT, SAIC, CBRC, CSRC and CIRC ... http://www.pbc.gov.cn/english/130721/3377816/index.html

V. The Public Need to Stay Aware of the Risks ofCoin OfferingFundraising and Trading

There are multiple risks incoin offeringfundraising and trading, includingriskoffalse asset, riskof operationfailure,
riskofspeculation,and etc.The investors shall takeinvestment riskson their ownand becautious offrauds and scams.

The public shallbe awareof the risks and learn to identify theillegal financial activities inthe name of "currency"(biin
Chinese), and report clues of illegal activities in a timely manner.

VI. Self-regulatoryOrganizations ShallExercise Industry Self-Regulation

To keepfinancialactivities inorder, all kinds of self-regulatory financialorganizations shall interpret policy properly, urge
membersto consciously resist illegal financial activities related tocoin offering fundraising andtrading
orvirtualcurrencies,and to stay away from market irregularitiesand improveinvestor education.

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E-mail:webbox@pbc.gov.cn Tel:86-010-66194114 Addr: No.32 Chengfang street,Xi


Cheng district,Beijing,China PostCode:100800

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