block.one - Statement Regarding Proposed Changes to PRC Law

18 days ago
in eos

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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:

  1. the EOS Tokens do not fall within the definition of “security” as stipulated by the Securities Law of the PRC (as amended); and
  2. 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 support@block.one.

Sincerely,

block.one

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Nice post. I find it unfair towards Chinese people :(

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In the markets, China has surprised me more than once. The last attempt to shutdown a major Bitcoin exchange preceded a major rally which basically got us where we are today (strong US investments are coming in now). It is harsh but it really teaches people to be smart and strong. Those that are both, are rewarded. I'm very grateful to the Chinese for all they have done so far.

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I understand that currencies and markets tend to be protectionist from political instability but this doesn't change the discriminatory nature of this move. How would you feel if you were Chinese? I would feel like a second class citizen in this case.

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This is just a statement that allows Block.one to cover their proverbial a## while having exactly zero bearings on Chinese people's ability to effectively invest in EOS. Let's not get too sentimental.

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I would have a lot of adjusting too do.. At a high I would imagine it is all the same: wake up friends and family (the masses), overcome fear, see the insanity where it exists, use and demand new systems that make the old systems obsolete, boycott evil even if it is more convenient.

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and make new systems ourselves.

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US Residents were also banned from purchasing EOS. China is being more extreme though. Places like South Korea, Japan and Switzerland are leading the way. Zug is the first City to put its residents on blockchain Government ID's.

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This is really a very nice post.

Isn't interesting that two of the largest economies in the world are barring their citizens from participating in what is arguably the greatest wealth creation opportunity any citizen is likely to see in their lifetimes. It's not your money and you don't get to choose what to spend it on unless the Guberment says you can... and the Guberment says you can only buy fiat, debt and ponzi securities that have a negative return after inflation. My God I can't wait until Dan makes these idiots obsolete.

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The US government doesn't care if the nation is getting richer as a whole. What they care is to keep their tax salves as indebted, subjugated, ignorant, overworked and obedient as possible, so that they can retain absolute control and maintain themselves at the top of the pyramid. Now if freedom minded folks are allowed to make serious money in crypto, they are going to get more and more interested in that technology, quit their jobs, and have plenty of time to develop, fund or support even more disruptive shit that's going to make it even more difficult for them to keep the lid on the people. No way they can let that happen.

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You nailed that one @recursive. Governments want a monopoly of control over coercive force and money. The tax slaves must live by the government rules, and be happy about it.

Freedom, on the other hand, is a very dangerous thing. When governments talk about freedom, they really mean "their freedom to do what they want" NOT "the liberty of citizens".

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When I convinced my wife to invest some money in cryptos, I told her that it will be a very bumpy road for the next 10 years. I do not believe that the banks and the stock market will go down with out a fight and you mention whose support they have :)
We just need to hang there tide

so are we in the clear to roll out soon to be the most used blockchain in the world EOS

在根据相关的ERC-20智能合同(“EOS智能合同”)分发EOS ERC-20兼容令牌之前,依据“EOS令牌”的规定,来自中华人民共和国(“中华人民共和国”)的主要法律事务所,合理确定:
一.EOS令牌不属于“中华人民共和国证券法”(经修订)规定“证券”的定义;
二.EOS令牌的分配不被视为“中华人民共和国刑法”(经修订)规定的“非法集资”。
尽管这一法律建议仍然是准确的, 但由于中国对加密货币代币的分配方面的监管环境不断变化。因此, block.one决定排除中华人民共和国公民和中华人民共和国法律 (统称 "中国人") 形成的实体, 购买 EOS 令牌的有效性。
中国人严格禁止使用EOS智能合同和/或购买EOS令牌。如果中国人使用EOS智能合同和/或购买EOS令牌,该人已经这样做,以非法、未经授权和欺诈的方式订立EOS令牌购买协议,此协议将无效。
关于李笑来先生的 声明
block.one还要澄清并确认EOS.IO软件的开发和eos令牌的分配 是block.one的独立项目。而李笑来先生不是联合创始人、董事、高级人员、信托、员工、代理人或团队成员。此外,block.one没有委托李笑来先生担任EOS项目的发言人或者其他任何方式,包括EOS令牌分发。
如果您对上述有任何疑问,请联系support@block.one。

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If this is the Chinese translation (which it looks like it is) Thank you!

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Yes

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会继续支持EOS的发展,这是一项好技术,就是有点担心投的钱会打水漂了,不知道未来会怎么样,希望一切都好吧……

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EOS 会从云币下架吗?中国人以后就不能买EOS了吗?

I think its a silly move from Chinese Government. I understand not letting Chinese citizens to buy tokens, but to refund them. That probably can't work.

Great post, Chinese pushed the price lower, maybe good time to buy.

I doubt Chinese investors will just stop investing and trading in ICOs because the authorities are tying to clamp down.

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(shhhht, don't say that so loud)

Just to make sure we're all on the same page - when you say the EOS token purchase agreement is null and void for people in the US and China, you're talking about the same purchase agreement that states that no one has any obligations and you guys will have no control over anything done with the tokens later, right?

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What they mean is that the purchase agreement between you and them whereby you donate your money to them in exchange for aboslutely nothing is null and void, and you won't be getting your absolutely nothing when the time comes or doesn't as the case may be when you don't expect anything.

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@recursive and @troglodactyl are involved in a dangerously fact-based and logical discussion. There is no room such disruptive wrong think. Or is there?

From now we will remember this issue, as one of out understanding of eos token distribution in china, I hope we don't blame anyone of this issue, but how take this issue as our expereince in new era of crypto. Looking forward. See u on the top.

Buh bye China.

Hi @eosio, Nice post. I've an off topic question for you: The earnings for this post are shown as declined. In this scenario, if someone upvotes this post, will s/he get paid?

I have just got some more EOS. I will continue to buy if the price drops. I really think EOS is not affected with recent news in China.

Also I think this mess in China and Russia is a really good opportunity to buy in great projects like EOS.

This is really not a good news for most investers.

Someone should translate that into chinese ...

you should change the response from chinese person to chinese citizen because the usa has chinese people they live around the world

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Person is a legal term.

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Even Chinese in US can't buy. US citizens are banned form IOS too, unless you use VPN.

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just you the exodus wallet you can buy from there

Nice post @eosio good luck 💪

Steemit Bank invested in your post.

Follow Steimit Bank

Just a buying opportunity for the rest of us non Chinese/Americans.

World class post

Shared on Twitter.

To cancel the participation of the Chinese without a little benefit,

Wise move, better to prevent the worst case scenario.

Outstanding post and narrative. Thank you for sharing:)
EOS is a powerful coin .. now its very cheap whe have to invest in this great coin
resteemed

Hmm, but why are chinese people prohibited??

What is saying Mr. Li Xiaolai? I don't know who is him. Maybe an investor

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He conducted several ICOs that took the EOS token as payment.

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A little shady, but smart move.

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Wondering what will happen to his press.one. Some other recent ICO money has been refunded to their investors.

there prices are officially fomo positive Schermafbeelding 2017-08-13 om 19.56.57.png

I wonder how the Chinese peoples feel about this.

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I'm Chinese.I feel sad!!!

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Tell you what, i feel sucks.
As a true believer of EOS, and a chinese.

Lolz

Why are people flagging this post?

那么对过去曾经参与的EOS购买和交易的怎么办,那些EOS怎么处理
有大量的EOS在中国的交易所平台交易
不再接受中国人参与ICO 表示理解,官方能否给出现有持有者的币该怎么处理?是否会在中国交易所下架?

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以太钱包里的还在,我在云币网的就有点担心了,目前云币网显示“在维护”,打不开了……

nice post

한국어 번역글을 아래 링크에 올려두었습니다.
Here's a korean translation of the statement.
https://steemit.com/eos/@dev1by0/block-one

one boring life trying to find money more then adventure. stop it hell live your life coz its aren't getting you back. UPVOTE this comment and take challenges on my page.

形势不妙啊

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我也有点犹豫了,看不清形势,再等等看吧,如果EOS项目能落地,就不用太担心~

This project is becoming a nightmare for investors

Glad you clarified...before people assumed all the wrongs things :)

I like this project. But I must admit, i'm worried about the current price when you consider that most of the tokens don't even exist yet. It just seems to have too high of a market cap at the moment when you consider that about 70% of the tokens have yet to be distributed.

More coins for the rest of the wrld :p

As China is the major purchaser left of the tokens on exchanges this will suck for a while.... I will still be buying... but it will suck.

what's the follow up solutions for Chinese already purchased in the past?

This is crazy there is so much going on.

Congratulations @eosio!
Your post was mentioned in the hit parade in the following category:

  • Pending payout - Ranked 3 with $ 409,89

Amazing Post! Upvoted and Resteemed

Really fasts reaction to the "Chinese situation"
hopefully this is enough to stave off a full collapse of EOS because the recent decline has not been boosting my confidence and this announcement from China did not help
good to know that @dan is on the case and that they are staying vigilant
might buy on the dip after all...

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Hardly a collapse. EOS is an exciting project, but at this stage it's valuation was very bloated... I think it's starting to hit reasonable levels really.

I think this is true in general about the current ICO market, this correction was expected.

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Do it!

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That shows that they take care of their project. Well done!

your post is very nice, full pack of knowledge and very attractive...
i am new here bro plz come see my blog and upvote me if you like :-)

What is the use of the ERC20 token since EOS won't be it's own blockchain? Will it act in essence as a "stock" for the company?

The Chinese have enough mining capability lol I'm not too worried for them

Thanks for the update. It's reassuring to know that EOS has been reviewed by law firms and not thought to fall under the category of a security. Hopefully this will all be sorted out and this will prevent some ICO scams while not preventing good ideas/companies from starting, but who knows. At least some governments have started embracing certain aspects of cryptocurrency.

Feel pretty sad to be a Chinese.

There is no difference between the rule of Commie Chinese and pseudo-democratic deep state of the US. This is ruthlessness under the garb of "protecting the interest of the investors".
If these regimes are so concerned about the scams, why can't they give an advisory instead of totally banning ICOs. Should you ban vehicles on road because there do exists accident prone drunk drivers?