Riddle me this: Why are regulators so allergic to ICO's, while they "tolerate" BTC? Not that I like ICO's, but I fail to see how are they more disruptive than BTC?
Because ICOs are relatively easy to stop - if they are public- if the owners are public- if the platforms they launch on are public- then it is a bottleneck- one that is easily attacked - its a weak point.
If you stuck an ICO and an address onto a forum (I knew a forum once where this happened regularly) and ask people to send BTC- and your OpSec was up to scratch - and you could then make use of the funds - and access your profits..
then it is far tricker to stop. Thing is... if you raise 100 million - in a non public - platform based manner... then you have 100 million for your ICO- but how do you use those funds? (unless you pay for everything in cryptocurrency) it is trickier the larger the sum involved. You could fly under the radar and legitimise a mil-but over that and its going to start throwing obstacles at you...
The other thing is- sandboxing ICOs in your own country is one problem... sandboxing the entire country from the rest of the world is not so easy... (i.e China cannot make France also ban ICOs and also control if Chinese people decide to evade the rules and invest in a french based ICO)
To police it is difficult- to stop it is near on impossible - their best bet is to go after the bottlenecks and to legislate and criminalise and threaten violence and incarceration.
BTC is anti fragile - China has no control over which other countries allow BTC and have little recourse to stop their own, nor any other countries citizens to stop using BTC.
In short - they just want to get their hands around ICOs iMO and they will be back in the future- executed by smart contracts- and linked into digital identities... - linked to digital assets- all linked to PBOC - -everyone paying their taxes- all KYC'd up and with some perceived control over capital outflow. They know better than to try to stop BTC - it would be a futile and monumental waste of time and resources- plus they will fail.