OmiseGo (OMG) has moved to take out rumors about the
company possibly being impacted by China’s crackdown on ICOs. With a post made
on Reddit, 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”.
OmiseGo
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 ‘OmiseGo’.
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”
PBOC
regulation
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.”
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