Companies, Investors Use Loopholes to Circumvent China’s ICO Ban

According to a recent investigation by state-backed media Xinhua News, a number of companies and investors were able to circumvent the Chinese government’s crackdown on initial coin offerings by exploiting loopholes in the law.

The report revealed that while it appeared that cryptocurrency exchanges had shut down their operations in the country, they were still able to provide trading services to domestic users by going overseas for registration.

It was also revealed that most of the exchanges had set up in Malta and use popular encrypted messaging app Telegram as the prefered method of communication with investors.

Source: Coin Telegraph