The People's Bank of China has prohibited.....>

CHINA: The People's Bank of China has prohibited financing activities using

virtual currencies, effective Monday, according to a statement on the central

bank's website. Initial Coin Offerings, equivalent to an IPO for a virtual

currency, are used by a financing entity to raise virtual currency -- such as

bitcoin and Ether -- through the illegal sales and circulation of token

currencies, the PBOC said. Related activities such as issuance and sales of

token money, issuance of securities denominated in token currencies, or pyramid

selling, are illegal, the PBOC said. Virtual currencies do not have the same

legal status as government-issued currency and so may not be circulated on the

secondary market.   The central bank said regulators will investigate and close

businesses involved in illegal virtual currency activities. Financial

institutions and non-bank payment institutions are prohibited from having any

business related to virtual currency financing and issuance, the PBOC said.

Bitcoin prices were down 6.88% less than two hours after the announcement came

out.