China and the ICOs

[theuploader]

An analysis on the effect of regulatory interference by China on ICOs

With over US$1.3 billion having been raised through initial coin offerings (ICOs) in 2017, the market has caught the eyes of regulators, monetary authorities and central banks within three of the major global hubs of cryptocurrency investment.

Over the past two months, several authorities have expressed the need for financial regulation, and in recent times, prohibition.

An overview of recent events is as follows:

25 July 2017 - SEC issues investigative report on DAO token (USA)

The SEC issued an investigative report cautioning market participants that offer the sale of digital assets and the need to comply with federal securities laws.

01 August 2017 - MAS clarifies regulatory position on digital tokens (Singapore)

The Monetary Authority of Singapore (MAS) issued a statement advising that some tokens will be constituted as products under the Securities and Futures Cap (Cap.280).

04 September 2017 - PBoC prohibits the sale and purchase of ICOs (China)

The Peoples Bank of China (PBoC) issued a statement prohibiting the purchase and sale of initial coin offerings by Chinese investors, banks, and issuers.

The preceding events have led to short term volatility and uncertainty within global crypto markets as investors liquidate portfolios in the wake of regulatory intervention.

The statement issued by the PBoC has had the most profound effect on markets due to China’s influence and recent participation of new token sales.

The affected

As a matter of illustration, we refer to the case study of Neo (NEO), a Chinese based blockchain firm which was to be dubbed as China’s new Ethereum. NEO launched its ICO in July and at its peak, gained 300% from its opening on the exchange on August 6th, 2017 (although ICO holders received a deep discount).

[oreits11]

they might be back to the customs of the closed relationship following also the strict regulation to the information exchange.

that the point now is that the customs of appeals as different buyer/investors should be aware as they might collects of shifts as the differences on

expends as they might only to displace spares on unit with the risks exchange

that the returns with the better work to gains of right with the valuation on disposition to have of right of fair with the exchange on transaction, as

they might gains without to spends the complete details as disadvantage the good absence on business.

[jameshowlett]

Banning is not a big issue. ICO can find another place to world. Moreover, many experts believe that this ban is only temporary. Everything will be back to normal. AS you can see, ICO can bring a lot of money to a country and China will not miss this opportunity to earn money with ICO. Maybe they will develop their own project to run their own ICO for money.

[wxa7115]

Banning is not a big issue. ICO can find another place to world. Moreover, many experts believe that this ban is only temporary. Everything will be back to normal. AS you can see, ICO can bring a lot of money to a country and China will not miss this opportunity to earn money with ICO. Maybe they will develop their own project to run their own ICO for money.

I do not think this is going to be a temporary thing, the SEC did the same, and while further regulations may follow I doubt many icos will want to comply with all of that, it is way easier to deny participation to people from those countries and be done with it, besides is not like the Chinese government earn anything out of icos, so it s very easy for them to ban them.

[Gnosis7777]

It's not going to end well.

[frowsiter]

Thank you for this list. I think that this ban is temporary and they will be added back up in a month or so. This is the huge manipulation ever. CHINA is just playing with us, I liked china and I thought that they will make amazing icos, but instead they banned it. They are just crazy people.

Yeah that's true about them. China people are getting it done with weired ways and making the fun of crypto world I believe. They have been always known to the manipulation category and will keep doing such fraud again and again over the time. This will shake the world of bitcoin and people will start selling the assets in the panic and they will take the opportunity to invest more into that situation. That is what they are doing. The price has gain started rising for bitcoin which means only one thing china has started investing again and this was the only plan that they had.