What the heck is happening with China, ICOs and Cryptocurrencies?

What the heck is happening with China, ICOs and Cryptocurrencies?

by September 6, 2017

So, this happened:

China bans initial coin offerings calling them ‘illegal fundraising’ – BBC

“The People’s Bank of China has declared initial coin offerings (ICOs) illegal and wants them to “cease immediately”.”

Updated: Central bank says all ICOs illegal, Technode

China ordered ICO Funds to be returned to investors:

Impact on the Global ICO Market – cryptocoinsnews.com

“Several blockchain projects including Health Mutual Society have already refunded all of the funds they have raised in bitcoin and Ethereum over the past few months. “

Which saw a sharp drop in cryptocurrency prices:

Cryptocurrencies have crashed 20% in two days – Techcrunch.com

“After months of unprecedented appreciation, almost every digital currency is seeing double digit losses over the last 48 hours.”

Some people are warning that it’s actually a massive problem for Cryptocurrencies:

Here’s why China’s crypto crackdown is ‘bigger than most people think’ – Businessinsider.com

“The wording of the PBoC edict also suggested that trading and usage of all cryptocurrencies, including bitcoin, could now be illegal in China.”

It’s all in the wording of the PBoC:

China’s ICO Ban: A Full Translation of Regulator Remarks – Coindesk.com

“Recently, a number of token fundraising activities in the country, including initial coin offerings, have emerged for the purposes of financing and speculation. Such [sales] are considered illegal and disruptive to economic and financial stability.”

And it’s not looking good for the future of ICOs:

More Bad News Ahead For Chinese Bitcoin, ICO, Cryptocurrency Markets – Cointelegraph.com

“Other countries have also promised increased regulation. South Korea recently stated its intention to regulate the cryptocurrency industry, and may also move to ban ICOs.” infocoin

ICOs are subject to Securities Law in Hong Kong: License needed! – Fintechnews.hk

same in Canada: Fortune

A Phone Call From SEC Pressures ICO Startup to Close Operations and Refund, Bitcoin.com

Singapore, like the US, says it may regulate some ICOs, Techcrunch

Russia’s Central Bank Issues Warning on Cryptocurrencies and ICOs, Coindesk

Last week already: The SEC warns investors about potential ICO scams and ‘pump and dump’ schemes, CNBC

Israeli Securities Authority Establish Committee to Consider ICO Regulations. – InfoCoin

Although some people think we should be steering clear of them anyway:

99% of ICO’s Will Fail and I Will Tell You Why – Ameer Rosic/Linkedin.com

“Companies are raising millions in minutes, that literally only have a white paper. Now from the outside, it might seem like the holy grail of raising capital but think again. ICO’s are not about raising capital.”

People have mixed feelings about the impact of the ban on major cryptocurrencies, like Bitcoin:

China ICO Ban: Crypto Industry Leaders Weigh In – cryptocoinsnews.com

“Saying what was likely on the minds of many community members, ShapeShift CEO Erik Voorhees dryly opined that China “just love to bans stuff.””

But it’s likely it’ll get worse before it gets better:

ICO crackdown may just be the start: China is reportedly planning tighter cryptocurrency rules – CNBC.com

“Yicai’s report late Monday cited a source close to decision-makers as saying the announcement on the ban was just the start of further follow-up regulations of virtual currencies.”