AMCM warns about cryptocurrencies

The AMCM has banned banks from offering financial services to companies that issue virtual currencies.

Macau.- Macau’s financial regulatory entity, the Monetary Authority of Macau (AMCM), has issued a statement in which is described that it prohibited the territory’s financial institutions from providing serices to business that use virtual currencies. The move comes after an initial coin offering (ICO) proposed by Dragon Corp to raise funds for the construction of a casino.

“In view of the recent emergence of a large number of inward currency issuance financing activities, speculation in speculation, the mainland ministries have banned financial institutions and non-bank payment agencies to provide financing for the currency and virtual currency,” said the AMCM, and added that it sent a letter to all banks and payment institutions in Macau to not engage or provide any financial services related to virtual currencies.

“Due to recent happenings of financing activities through issuance of tokens in the Mainland, financial institutions and on-bank payment institutions are prohibited explicitly by Mainland authorities from providing services for these tokens and virtual currencies,” explained the AMCM.

The ban has surged the same week as Macau-based gaming company Dragon Corp launched an ICO to raise US$500 million for the construction of a casino in partnership with Thai-based Wi Holding. CEO of the company, Chakrit Ahmad, told local news that the crowd sale was set to comprise “the first time anybody has allowed the public to invest in a public junket or become a shareholder of a casino.” Nevertheless, even in Macau bans cryptocurrencies, Dragon Corp would not be subject to the crackdown as the crowd sale is being issued in Hong Kong.