The AMCM Informed Local Financial Institutions That They Must Not”Participate in or Provide… Financial Services Related to [Virtual Currencies]”
The ban on financial institutions providing services to firms operating with bitcoin of macau has been sparked by the recent cryptocurrency crackdown of China. The Monetary Authority of Macau states that”because of recent happenings of funding actions through issuance of tokens from the Mainland, financial institutions and on-bank payment associations are prohibited explicitly by Mainland authorities from providing services for these tokens and virtual currencies.”
Macau, formally known as the People’s Republic of China’s Macao Special Administrative Region, is an autonomous land. In Macau, unlike mainland China, making the territory a regional hub for gaming and casinos gambling is legal. Macau has been the subject of a crackdown on money laundering by Beijing, with regulators moving to monitor capital outflows into the territory — including the introduction of ATMs that scan for facial recognition and identity card checks throughout Macau during cash withdrawals.
According to Reuters China, the AMCM said that”in view of the recent development of a large number of inward currency issuance financing activities, speculation in speculation, the mainland ministries have prohibited financial institutions and non-bank payment agencies to offer financing for the money and virtual money and .” Macau’s financial regulator also stated that it had sent a”letter to banks and payment associations in Macao, should not directly or indirectly take part in or provide any financial services associated with [virtual currencies].”
The Macau Dragon Corp.. Is Conducting an ICO to Finance the Growth of a Casino
Macau’s ban on financial institutions providing services to virtual money companies comes during the exact same week that Macau-based gaming company, Dragon Corp., launched an initial coin offering to raise $500 million USD for the building of a casino in partnership with Thai-based Wi Holding. The CEO of Wi Holding, Chakrit Ahmad, told CNBC that the crowdsale will include”the first time anybody has allowed the public to invest in a public junket or become a shareholder of a casino.” Due to this crowdsale being issued in Hong Kong, the ICO will not be subject to the crackdown of Macau despite Dragon Corp’s proposed casino set to be constructed in Macau.
Dragon Corp’s crowdsale has generated controversy in China, as the 61-year older former-boss of infamous criminal organization Triad Society, Wan Kuok-Koi, was photographed at the signing ceremony for the partnership between Dragon Corp. and Wi Holding.
Do you think that Dragon Corp.’s ICO will successfully evade Chinese and Macau regulators? Share your thoughts in the comments section below!
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