The Chinese authorities have called all Initial Coin Offerings (ICO) unauthorised fundraising tools and a possible scam and ruled to immediately stop all ICOs.

The joint statement was issued by seven government administrations including the People's Bank of China, China Securities Regulatory Commission, China Banking Regulatory Commission and China Insurance Regulatory Commission.

Chinese authorities are trying to ban all projects that raise funding through cryptocurrencies. According to the statement, the organisers of ICOs should understand that they are involved in illegal fundraising, illegal securities issuance, possible fraud, pyramid schemes and other criminal activities.

As of the date of this announcement, all types of coin offerings, related to financing activities, should be ceased immediately. Organizations and individuals who have in the financing process should return attracted funds in order to protect interests of investors and properly handle the risks associated with illegal financing activities.

The Chinese authorities also prohibit trading platforms to allow trading of such tokens, provide prices and other informational services related to these tokens. Otherwise, trading platforms may lose their business licenses and be suspended or closed. Furthermore, financial institutions and non-banking payment institutions should not carry out operations related to tokens financing transactions.

“The relevant departments will closely monitor the market, strengthen cooperation with the judicial departments and local governments, in accordance with the existing working mechanism, with law enforcement representatives, in order to bring the market chaos under control.”

Local outlet Caixin reported that the committee provided a list of 60 major ICO platforms for local financial regulatory bodies to inspect.