06 Sep OmiseGo Unfazed by China’s ICO Ban
OmiseGo has moved to stamp out rumors about the company possibly being impacted by China’s crackdown on ICOs. Through a Reddit post OmiseGo reassured everyone that China’s ban on ICOs will not necessarily harm the OMG network.
On the post, OMG said China’s prohibition only refers to decentralized currencies, meaning it doesn’t necessarily affect the OMG network:
“The OMG network is currency-agnostic and the open-source, white-label digital wallet framework we provide will allow financial service companies to select what services they provide their end-users, in compliance with the regulations they must follow”.
With such transparency and constant updates from OMG admins, many investors were assured of the company’s long term resilience. Many praised OMG for its transparency and for assuring the public that they can still keep ‘OmiseGoing’.
Redditor koocer says:
“Good news and great time to stock up on more OMG :)”
Benkeele on the other hand says:
“This is why I’m strong in OMG. We believe”.
And soar-x says:
“great communication, this makes me proud as an investor”
The Chinese ICO market is in freefall after China’s Central Bank declared Initial Coin Offerings illegal.
The People’s Bank of China announced its stance on ICOs in the country and that it has completed its investigations on ICOs.
It has found out that the tokens used in ICOs are not issued by the monetary authorities, don’t have legal and monetary properties such as indemnity and coercion, don’t have legal status equivalent to money, and thus cannot and should not be circulated as a currency in the market.
With that determination, it is sure that any future activities involving ICOs will be punished, while those that have already completed its offerings will be penalized. Regulators also said that those who have already raised money must issue refunds back to their investors.
Jehan Chu, Managing Partner at Kenetic Capital Ltd. in Hong Kong says:
“China, due to its size and as one of the most speculative IPO markets, needed to take a firmer action so this is somewhat in step with, maybe not to the same extent, what we’re starting to see in other jurisdictions — the short story is we all know regulations are coming.”