Bitcoin Forum

One hour ago, the bank declares ICO illegal.
Bitcoin tumbled 7.2% to $4,530.73. Altcoins are worse than that.
https://www.bloomberg.com/news/arti...-bank-says-initial-coin-offerings-are-illegal (https://www.bloomberg.com/news/arti...-bank-says-initial-coin-offerings-are-illegal)

With all the money that was going out of CHina because of these ICO, the government had to do something! In my opinion the downtreand has just begun and more of this will follow

It goes down even more as of this writing on which the price have dip down again on 4323 on preev. Which we can say that these event do really give impact on bitcoins price. They would definitely act on this one because money will really goes out in China same on the thing that was said by dude above. They would really need to act and now they imposed this kind of prohibition.

The money going out via ICO doesn't have so much. The ICO impacts the IPO and the stock market. Probably it's the reason for the illegal statement.

But this news has created an opportunity to accumulate your favourite coins at lower prices. I think we shouldn't jump in all at one time instead of start accumulating in small amounts. Markets went up quite a lot and were looking for some reason to correct and this news surely gives us a good time to enter again.

So that's why there are blood bath in the market right now,this is no longer price correction,it's going to drop even more
What will happen with ICO's now? Is this an end to project who use smartcontract based on china?

You are correct. All ICOs in China are illegal now. The statement didn't say that all Altcoins and exchanges are illegal.

this could be a threat to cryptocurrency. hope there is a good solution rather than banning cryptocurrency. i think goverment just cant handle it and bank life is on the line and banning cryptocurrency and ico as solution.

Wow, these are the days we are going to remember 20 years from now. All the turbulence in this growing market.

How does this decision influence Singaporean ICOs? I think Singapore is a part of China.

This is method to regulate altcoins and ICO market. My opinion that will be to find another ways to participate in ICO. And it will solve all problems with ICO now

What are most known Chinese ICOs?
1-NEO
2-?

China is a huge market for investors of ICO, The Chinese decision could lead entire ICO industry to decline.

Yes I know, But Singapore as a part of mainland is differ from the other countries. I ask is this decision a must do for Singaporean ICOs?

Chinese is great market with bln money. Not only ICO important, alt coins also. And there is LTC, BCC and much more. Many developers work in China. Now some near future blockchain conferences were canceled. It's sign!

The crash is still not low enough as compared to just 2-3 months back! :P

Haha, what? Singapore part of China?

Chinese government will be very glad if theire president aslo think so.

;D ;D ;D
I was always bad in geography

More details are here - https://www.youtube.com/watch?v=BBkPuAZtn-Q

the fait money raised from ICO is not like that much, the figures are just used to exaggerate

Hope you are better in investing into the right coins then.

Greetings from Hong Kong (bonus question: is Hong Kong China?)

I believe Hongkong is a part of China. By the way, is this statement impact HongKong market?

these chinese and korean markets are pretty much fake, this is when you all giving so much credit to coinmarketcap and he's making a killing.
these morons calling them self experts need to get their stupid head out of cow poops. korean and chinese market in this crypto world is very very small but their egos are pretty huge!
also the chinese can create and participate in any ICO freely all they need is a VPN

Is there an estimation how much percent of the raised capital in ICOs are actually from China?

How big is the market in China?

And how will the Chinese government know who is investing in ICOs?

it is possible to invest from China in ICOs by using a VPN service...but this will still def. influence the market...

What a dick move for China. Freedom down the drain. People should be educated to treat ICO's and crypto in general with great caution but to ban ICO's altogether? More than ETH and other coins going down and affecting my personal portfolio, this is pissing me off on a greater level.

All altcoin drop down because this bad news . But i sure all will raise up back just because of some little time . After this , Altcoin will more stronger than before . Let's see

I dont think Chinese can participate ICO from now on. No bank is allowed to provide service for those who are involveed  in ICO market.

This is not real crash, it may be worse. I am curious about that if ico is declared as illegal by china's central banks whether chinese exchanges will have to delist some coins.

In my opinion, the declaration only does is exclude Chinese people to participate in ICOs, remember that NEO can still conduct ICOs outside china. Just like what EOS did, excluding Americans from participating. And I feel that what is NEO is going to do.

If they do impose new law or announce/declare that illegal then they would really mean it and theres no returning back on the words that have been said already.For now they cant really join ICO as of now but there are still some ways on how to join just as being said people can anytime use of VPN.Just be sure on the money you would use on participating not to be traced or suspicious.

Those chinese exchanges have delisted some coins. Actually the biggest Bitcoin exchange removed ICOcoin some days ago.

I think we need to wait October and the Communist Party meeting. They have blocked several investments abroad as well (soccer, real estate, etc) for political reasons. The situation is likely to change soon later.

The Chinese government should just supervise the ICO all over the board, but there are no other restrictions on the exchange. After that, the situation is fixed. This time it is very strong and everyone is injured.

China has done something like this before with the exchanges. Just have to wait until they propose regulations and everything should rise again. Until then invest wisely in quality coins and follow the news carefully.

Wow, this is serious, But the will make money, because many ICO are from them. I know I have invested on so many ICO from China. Anyway. the should just move to another country and pitch there nitch.

Litecoin and IOTA are one of the biggest droppers today after the declaration by China's central bank. I don't mind saying that LTC has maximum investment from china, on Jubi exchange LTC/CNY has fallen deep to history, i see a red blood bath for next couple of days , maybe a week.

So that this is the reason of such a great fall in the prices,could be interesting to see how the market continues to behave in the face of such an eventuality.

You should check out NEO if you want to see a heavy drop :p
Honestly I don't seem to find many "light" droppers

that's another thing mate if china will do this more crash will happen especially to those project which still not proving its existence
Chinese is very strict when it came to their laws so we cant do anything to avoid this but certainly another country like japan and korea
will step up and push the crypto currency back to its position.

So that's the reason why the altcoins now mostly are all red. Even bitcoin dumped it price too. Does anyone have a link to the news or page about this issue? This will be a huge impact especially in the ICO industry because most of the huge investors came from China's market itself.

Here is a really very helping link:
https://www.reddit.com/r/NEO/comments/6xz6tl/how_china_banned_icos_and_how_you_can_benefit/

Bitcoin is falling after being defeated in $5k wall.
You have the link in OP's post.

Yes news are dramatic, about 400 millions $ of ICO's raising this year came from China. In long term however, Chineese will come back to ICO market with regulations, the same thing happened when they banned bitcoin.

ICO already banned in US, most ICOs do not accept US investors, and
"In the United States, only accredited investors can be offered private placements of securities, and the onus is on the issuer (in this case, the token sale dev team) to ensure that only accredited investors take part, lest they expose themselves personally and their company to potential criminal liabilities in the United States."
normal people cannot participate in the future according to SEC, except Wallstreet

hmm now the trick is, when to pick the bottom to get some good buying...

I'm thinking of that too, the ban itself will be temporary, many rich people in china will demand the regulation to be repaired. ICOs is actually just a people trying to raise funds to boost their project growth and china seem to not understand this.
but by the time goes, china will soon see the importance of ICO for some people.

What will happened to NEO after this news?

The press is having a field day with this...

The government move should “help cool down the market and sweep away bad actors,” said Jehan Chu, whose crytocurrency hedge fund Kenetic Capital has invested in Chinese ICOs. He said he hoped regulators would allow some forms of digital currency financing later. “I don’t think they’re trying to kill it.”

WSJ story: articles/chinas-ico-ban-brings-bitcoin-back-to-earth-1504526144?mod=e2tw

http://www.businessinsider.com/initial-coin-offering-china-bitcoin-ethereum-peoples-bank-of-china-law-all-crypto-illegal-etoro-2017-9?r=UK&IR=T

For the first 50 in coinmarketcap.com, there are NEO, Qtum, Hshare and Binance

Everyone knew this is going to happen.. Short term, this is bad news because people will trade on their emotions - namely fear today - but long term this is good news for blockchain technology. A ban on frothy/bubbly ICO's that are abusing investors with nothing more than a flashy website, a colored paper, and (maybe?) a few lines of code - thank goodness for cutting some of the fat off the steak.

The old trader jealous with ICos that are succesful.More traditonal traders move to ICO. Tht why ?

The link is dead, is it fake news?

No, it's not fake news. Here's the new link
https://www.bloomberg.com/news/articles/2017-09-04/china-central-bank-says-initial-coin-offerings-are-illegal

Since the Central Bank of China declared all ICO to be illegal, this would mean a reduction in the release of new coins into the digital market. And as a consequence of this, part of the flow of money will be invested in old proven coins, including bitcoin and ethereum. I see no reason for panic. Perhaps all for the better.

I agree with you. I hope this will bring a less new ICO's therefore, higher quality should also be expected in the future.

That's really bad. Every altcoin dump include bitcoin. I don't know why they did it. Can anyone tell me is this rules create bad effect for bounty programs and new campaign?

“He” predicted this 2 days before it happened. And he is predicting that it will eventually destroy all ICOs, not just ones in China:

Are Most Cryptocurrencies Doomed to Collapse — because they’re “ICO-issued”? (https://bitcointalk.org/index.php?topic=2145300)

That guy is a self aggrandizing dimwit. He didn't predict anything. People were already aware that ICOs would eventually be stopped in 2014. All you had to do was read the FINCEN guidance on decentralized cryptocurrency. If anyone is in doubt of this, just look through the Monero speculation thread around the time of the Ethereum ICO.

Maybe this is for the best - since we are using trustless blockchains and systems, it would be nice to have an ecosystem with trustless launches and development aswell - maybe we'll see another way of presenting or funding ion the future

Time to drain the ICO swamp in China?

So they are just going to employ family members now :D

Big investors are in China no wonder if China can affect the market. Many of the bitcoin enthusiasts are talking about China has Declares ICO is Illegal. Not long altcoin market are mostly down. Hopefully other countries do not make decisions like that.

I also hope so because I like to invest in ICO projects because it gives me more profit than long-term investment, if China bans ICO, it will affect a lot of upcoming projects and this is very difficult to accept in large countries like China

I would say that the effect of the ban will not too much, except for the orient ETH {NEO} and QTUM.

Many ICOs were not allow U.S. citizens to participate, and no one bats an eye.  ;D

We'll likely see many countries going the way of Russia, meaning only 'accredited' investors can participate in ICO's.  Governments don't want the average person to invest in these because then they get the same opportunities as those that are stuffing their pockets with 'campaign funds.'  This stuff irritates me so much!  We finally get something that governments can't get their hands on and they're still fighting tooth and nail to get their piece.

I think banning of ICO means ban to start an ICO, not ban to invest in ICO. So, basically, Chinese still can invest to ICO, be remember that the main feature of cryptocurrency is anonymity. How do we know the investor who pay in Ethereum is U.S citizen?

Yes, but they said that's coin shouldn't exchanged for fiat and coins cant be used as money.
This rules makes hard for chinese to buy any coin with fiat.
I think the governments want to control money market, and they have fear loosing it by the way coins spread.

I watched box mining's video today on youtube and he said this was already law in China. Tokens cannot be used as currency. Meaning you cannot purchase goods with them. Doesn't mean you can't buy them.

this is one of the best news i have love reading all true the day. ICO is 100percent illegal to me and this has been given me hitch. companies raising money thruogh ICO, for Chris sake if you want to develop or run a company you should at least have raised some setting amount money (percentage) required to run the company before calling on investor. and This ICO projects, is now one of the easiest tools scammers is now using to scam investors off their hard earn money.
To the best, cryptocurrency needs to be regulated to save investor from scammers.

the news that comes from China is always what becomes the biggest!
ICOs have been illegal in many other places so far and now China just joined them. although because Chinese are big investors in crypto markets we can say that it will have a big effect on ICOs and how they can get more funds eventually.

i also expect a lot of dumps in ETH because ICOs were the only reason it went up and now that it is over the ETH bubble can finally burst and there won't be much to keep it up now.

Winner will be the country that makes icos legal and regulated.
I think Singapore could be the one.
Also some icos have fined a way to be legal in usa e.g. cridit protocol (atm before pre-ico)

All countries are being forced to enforce securities regulation same as was the case for FATCA. All this information is covered in detail at the following blog:

Are Most Cryptocurrencies Doomed to Collapse — because they’re “ICO-issued”? (https://bitcointalk.org/index.php?topic=2145300)


Incorrect. Read the linked blog to learn about investment securities and more details. Follows is a summary.

There will be a banning of trading on the exchanges for the tokens which were issued by ICO (or any obfuscation of an ICO which is equivalent).

Tokens will be frozen on exchanges. Money will be recovered from issuers and some will be jailed. Some who promoted and/or traded large quantities of ICO-issued tokens will be fined and possibly jailed.

Use of ICO-issued tokens will be illegal (https://youtu.be/LNS8ucQj-rM?t=115) because it is illegal to trade investment securities on an unregulated exchange.


Incorrect. Singapore is planning to crackdown also (http://www.mas.gov.sg/News-and-Publications/Media-Releases/2017/MAS-clarifies-regulatory-position-on-the-offer-of-digital-tokens-in-Singapore.aspx).

 ;D hold some coin you think good and sell all now. If China people dont like anything. the price will fall down

Chinese guys are so sad :(

Yes because of this declaration had made all of digital coins price went down, the most altcoins getting impact of this declaration is NEO price of NEO went down almost 40%, the other altcoins that got impact are ethereum, ethereum classic include EOS almost all of the altcoins based on dapps and smart contract (ICOs) had got this impact include bitcoins its self, although bitcoins platform is not for smart contract (ICOs projects) but it will not be long time the price will goes up again soon.

Well this was coming. Things were getting pretty out of hand, tens if not hundreds ICOs every week, most of them utter rubbish with no application or use. Strong will survive.

What like how PayPal did seven years ago?
Care? Did it stop you all?

It is you the scammy idiots buying them that should have banned them..
Like they used to be long ago here.. You all lowered the greedy pajeet bar fer teh ROI's  ::)

I am confusing just one country can be made the all digital currencies value come down in a single day. China has that much hands in the digital currency. Really great when again these currencies will be back to normal rates. I will buy some altcoins now BCH and Waves.

THIS

Existing investors will focus more on the top tier coins for now, funding for all the bottom scam coins / ICOs will cease.

At the same time, influx of CNY/RMB into crypto will come to a halt, but the Chinese will come back much bigger once it is properly regulated (regulation will even attract risk averse investors then)

very terrible if ico is forbidden in china,
and I think maybe people there will protest and do not want to stay in silence

China gov want control ICO and just ban ICO from many project they can't control. But China people will try another way to invest their money.

Protests in China? Well, if you have a strong death wish...

The Chinese will swallow this as they have swallowed other, bitter pills before. And they will find a way to spend their excess money somewhere else for now, until the dust has settled.

I think this results to the dropping of bitcoin price. This news has a great impact on all who are using alt coins. I wonder if all alt coins are affected by this happenings. I'm afraid that the neighboring countries will be more aware and start investigating this ICOs. I hope that they will  have a clear investigation and see the benefits of bitcoin.

Yes, I agreed. Sarcasm you must be forgotten that China is a communism country. There will be no protest at all, Chinese citizen will take it, obey any rules made by their government. I tell you what, you can't visit facebook in China and a lot other websites, have you even seen a protest about it?

Well, I guess:
a) Chinese ICO HQs moving to BVI asap
b) listing ICO outside China
c) no many troubles for investors ... ETH and BTC come from nowhere

as far as I'm concerned China didn't ban ICO's, it may ban but did not do it yet. it's more about regulating them than banning.

As I already said in other threads with the China topic:


There are 2 scenarios for me:

1. Atm we have 4 countries regulating icos that is by far not "ALL" world. Other countries will slowly follow and icos will be regulated everywhere. The regulations will force issuers of icos to register a company, be transparent, pay taxes and give guaranties to investors and be fully legal responsible.

2. Not all countries will follow, anonymous coins will rise and icos will be held in countries with no regulations. Everything will work as before...


I would only panic about investing in scam icos no matter in which country the ico is hold.
A possible solution could be: Community driven audit service >>>  discussion here: https://bitcointalk.org/index.php?topic=2135456.new#new

I don't understand why all this panic, just about that news?

China ban their citizen just from participation on ICO, after ICO is done they can buy those tokens free as everybody.

Same did USA and Singapore, so what? still rest of the world can do.

And that price drop because people can't invest more in fraud ICO's wtf? invest in other alt coin which are safe.

Problem of crypto currency is that here are so many amateur people and when they see little down, get in panic. But yes this crashes are good, because people learn to not get in panic and in years crypto market will become more stable (less up and less down).

I think the timing is definitely interesting, it is happening at a time where more and more people are getting sick and tired of the massive amount of Scam or BS ICOs, that are essentially burying and almost making it impossible to find the legit, seriously created ICOs with huge market potential.

This is one approach, and a week ago, I also read this one: https://bitcointalk.org/index.php?topic=2124796 (https://bitcointalk.org/index.php?topic=2124796), about making ICOs pay some BTC in order to be allowed to create an announcement. Both approaches make sense to some extent, and I think we see that in general, there is a tendency towards regulation: wether it's completely outlawing them (which would suck for us, of course), or making them more regulated by state governments, or by self-regulating them via the community. But what we see is that the status quo is something that leaves nobody really happy (not even the scammers, I would imagine, as they also struggle to gain visibility amongst their fellow scammers threads).

As far as I know, in China a lot of things are formally forbidden but nobody is actually charged or somehow else punished for that. It holds for facebook, for example. I guess now we just see the big panic, but maybe Chinese will make their icos and use cryptos anyway a bit after this official declare of them being illegal.

Hi all,

it's understandable the price drop as a reaction to this announcement, however, I would not be too concerned about ICOs in the long term. Let's not forget that China has a long history of banned financial industries and potential threat to a free floating economy (something that they can't control but only influence). For example:
- In 2013 Bitcoin was banned by China for financial transactions...
- The Foreign Exchange industry (FOREX) is "almost-banned" in China.  We can say that they have very strict regulations if not total ban.

These are just 2 examples, that the news of today is not the end of the world...

I suggest that all ICO

are registered as company with legal tax number, maybe we can make some trust register on which countries are trusted (avoid kind of Nigeria)

every ICO company have to show names, references and faces public of owners and advisors.

every ICO have to pay some amount in register as warranty and after certain time they will get back. They will show that are serious people and believe in their project.

if other have suggestion how to regulate please write on..

maybe we will have some platform make all thing you say. like kickstarter