“Take airdrops, where tokens are given out for free to participants, rather than raising funds directly in public via ICO, while reserving a portion of the total supply,” the central bank said in the report. “These cryptocurrency startups then try to push tokens’ prices higher in the secondary market in a bid to reap profits.”
The report also appears to establish a regulatory basis for the eventual issuance of state-backed cryptocurrencies. “Crypto assets which are not issued by the government do not have legal status equivalent to fiat currencies,” the PBOC said.
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