Chinese ICO Site Suspends Services Amid Reports of Regulator Scrutiny

A platform for investing in initial coin offerings (ICO)s in China has suspended its services as government officials reportedly begin scrutinizing the funding model more closely.

ICOINFO, in a notice posted to its website, cited “a shifting regulatory environment” in its decision to freeze its platform. Users can contribute funds to the token sales that are listed. Two completed sales on the site show that ICOINFO accepts bitcoin, ethereum and eos.

The notice reads:

“Because of a shifting regulatory environment, and in order to minimize risk for supporters and project-owners, ICOINFO is voluntarily temporarily suspending all ICO-related functionality on the site. Once we have clarity from the relevant departments, we will begin conducting business in accordance with their specifications and policies.”

The message further states that withdrawal and deposit functions are inactive, but will be brought back online on September 5.

“Users who have participated in successful ICOs will be able to receive their tokens as planned, according to the schedule of the project owners, and can transfer tokens whenever the project owners allow,” the site wrote. “Withdrawal functionality will be launched at 10 a.m. on September [5], as planned, and at that time users can withdraw funds from ICOINFO.”

It’s the first indication that signs of possible curbs on the growth of ICOs in China is having an impact on the local ecosystem.

CoinDesk reported last week that officials could pursue more oversight over domestic ICOs following the release of new fundraising rules. Chinese media later reported that, in mid-August, a group of regulators, including representatives from the People’s Bank of China, met to discuss possible steps to curb ICOs which include limits on the amount of money that can be raised through a single token sale.

Image via Shutterstock