Red Pulse ICO Delayed: In response to the Chinese decision to ban ICOs, Red Pulse will be postponing its RPX sale in order to consult with their financial and legal advisors. Red Pulse does not plan to cancel their sale but delays it until there is clarity around the current regulatory environment in China.
Red Pulse is registered, incorporated and headquartered in Hong Kong. Although their KYC process excluded Mainland China, U.S. and Singapore Citizens from participating in the RPX sale, they are taking no chances is falling foul of the Chinese ban. The KYC form will be closed on September 7th as planned. On their website Red Pulse went on to say:
“That being said, we want to ensure we are 100% compliant with all related regulations and policies before moving forward. We are consulting with tax, advisory, and legal professionals that have prior experience with ICOs, and will do everything in our ability to ensure we are operating according to government policies and legal boundaries.”
As reported today, 40 ICOs have already closed their doors in China faced with the government’s ban on ICOs and their demand for refunds to investors. Easier said than done in the world of digital currency.
If digital currencies have been raised but no tokens have been issued, refunds can easily be done in the original form of investment. If tokens have been issued but the funds have not been used and there has been no online transaction, the ICO sponsors should arrange to refund investors. If the ICO is complete, tokens issued and there have been online transactions, the ICO sponsors could repurchase tokens to comply with the Chinese ban.