block.one - Statement Regarding Proposed Changes to PRC Law
September 4, 2017
Prior to the commencement of the distribution of the EOS ERC-20 compatible tokens on the Ethereum blockchain (the “EOS Tokens”) pursuant to a related ERC-20 smart contract (the “EOS Smart Contract”), block.one obtained legal advice from a leading law firm in the People’s Republic of China (the “PRC”) which concluded with reasonable certainty that:
- the EOS Tokens do not fall within the definition of “security” as stipulated by the Securities Law of the PRC (as amended); and
- the distribution of the EOS Tokens is not considered “illegal fundraising” as defined under the Criminal Law of the PRC (as amended).
While this legal advice continues to be accurate, due to the changing regulatory environment in the PRC with respect to the distribution of cryptographic tokens generally, block.one has decided as a matter of prudence to exclude citizens and residents of the PRC and entities formed under the laws of the PRC (collectively, “Chinese persons”) from purchasing EOS Tokens effective immediately.
Chinese persons are strictly prohibited and restricted from using the EOS Smart Contract and/or purchasing EOS Tokens. If a Chinese person uses the EOS Smart Contract and/or purchases EOS Tokens, such person has done so and entered into the EOS Token Purchase Agreement on an unlawful, unauthorized and fraudulent basis and such agreement will be null and void.
Statement Regarding Mr. Li Xiaolai
block.one also wants to clarify and confirm that the development of the EOS.IO software and the distribution of the EOS Tokens are independent projects of block.one, and Mr. Li Xiaolai is not a co-founder, director, officer, fiduciary, employee, agent or team member of block.one. Furthermore, block.one has not commissioned Mr. Li Xiaolai to act as a spokesperson for the EOS project or block.one in any way, including in relation to the EOS Token distribution.
If you have any questions regarding the foregoing, please contact [email protected]