In retaliation to this announcement, a 27% drop in shares managed by Xunlei was seen. It is also believed that the “digital virtual assets” series that were launched in October, last year, are nothing but ICOs in disguise.
How was Xunlei able to lure so many citizens without much ado? Xunlei issued Lianke to the contributors who were involved in the project with legal tenders so that it could be considered an essential financial activity which was nothing but a disguised form of ICO. The luring factor was trading tutorials for the beginners and publishing promotional activities.
Findings that can be sent to the rightful authority:
Investors and consumers alike are encouraged by NIFA to pay attention to the kind of the business while making rational investments. It warns people against just blindly going with the flow of rules and regulations. It says “Any illegal financial activities in the form of IMO, ICO activities targeting domestic residents through deployment of foreign servers, and exchange services, for “virtual currencies” once found, can be reported to the relevant regulatory agencies or NIFA. Any such activities suspected of violating criminal laws can be reported to the police.”
According to other sources, once crypto currency was banned in China, the value surged by 1000 per cent tops. ICO activities are suspected of three kinds of illegal activities: Illegal fund raising, illegal sales of bonds and notes, securities that are illegally issued. If this is true, this definitely makes it an illegal activity. Illegal fund raising campaigns happen during public gatherings or functions where people fall prey to the false likelihood of the profit they make. Bonds and notes are sold illegally without the necessary documentation. This could lead to the documents being waived due to lack of illegitimacy. Securities that are issued illegally may not even hold good when you claim your share.
All this could lead to a lot of problems and one must be careful about it. As instructed, if any illegal activity is found by the citizens, investors, it must be reported to the correct authority at the earliest. This will prevent many innocent victims from undergoing huge losses.
When you get in to the business of cryptocurrency, you must be fully aware of the circumstances and the outcome of the investments that you are about to make. Be careful about the investments that you make and the kind of crypto currency exchange you are dealing with. When startups start dealing with businesses like crypto currencies, they may not get things right the first time.
Just make sure that you report any findings to the right authorities so that innocent customers do not lose their hard earned money.