China Halts ICOs

Sheppard Mullin Richter & Hampton LLP
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China has put a halt to Initial Coin Offerings (ICOs) in China. In a recent notice, China declared ICOs to be an illegal fund raising tool and indicated it is reviewing previous ICOs for possible fraudulent practices. Money previously raised will also have to be returned. It is unclear yet whether this will be a permanent ban or whether China will permit ICOs subject to regulatory requirements. Chinese companies reportedly have raised $400 million through ICOs. Stay tuned for further developments.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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