ICO is officially banned in China !!!

[aeternus]

Why do you think that happened in China?

Communist party, total control, party members or relatives that got scammed, idiots in charge of laws...or simply put... because it is China.
Respecting the laws in China is impossible and that's why nobody does. That's why nobody cares abut them 'banning" something for the x time last years.

Great decision from China, although bitcoin took a hit in the last couple of days, seems like the effect wasn't permanent and will help regulate ICO.

They don't want to regulate it.They just want to stop them.
And nobody with a brain will invest in an ICO accepted enforced and controlled by the government.

Capitalist countries and communist countries have ideological differences but when it comes to protect themselves and their interest they are basically the same, China is banning icos if at some point they ban cryptocurrencies in general that would be awfully similar to what the US did when they banned gold ownership.

[1714780544]

1714780544

[Liang Yao]

I managed to translate the joint statement into English word by word and tried my best to make it as close to the original meaning in Chinese as possible.

Please check it out at: https://medium.com/@YaoLiang/statement-on-prevention-of-risks-in-fundraising-through-token-offering-issued-by-seven-government-49d8cd8292f9

A big applause to you dude! You really have done a great job there. Keep doing such work. I click the clap button but a dialog box appeared asking me to log in. Don't mind but I am a little bit introverts. BTW, I like the idea of clapping.
I respect China's decision as ICOs were causing disturbance in financial order. What can we say more than that.

Thanks for your nice comments. I will keep doing this because I think it is important for non-Chinese speakers to read the source of the news, the authentic document issued by the China authority (word by word) so that you can understand what exactly the Chinese government said. It is weird that people are commenting on something that they never had the chance to read...

Thank you for translating to allow non-Chinese to understand what is going on.

From my understanding, China government is banning ICO and Fiat to Crypto Exchange. Is my understanding correct? Does this mean Crypto to Crypto exchange is safe?

Thanks. Many people here in China hold the same view as yours, which is, the Crypto to Crypto exchange should be safe. I am about to translate a recent news report in Chinese into English where you can see this view point (I will post it later). However, I cannot say that your understanding is correct because according to the public statement issued by seven Chinese authorities which I have translated into English, it was clearly stated that the trading platforms (exchanges) shall not conduct the exchange business among "virtual currencies" (Section 3: Enhance the management of token fundraising and trading platforms). Based on such wording, it can't be clearer that Crypto to Crypto exchange is not allowed either.

Having said that, as a matter of fact, many things mentioned in the statement were not actually enforced as of today. For example, the statement also said that the trading platforms (exchanges) shall not conduct the exchange business between Fiat and tokens. However, if you look at the major exchanges in China, they are still providing the exchange services between Chinese Yuan and Bitcoin. Is Bitcoin a kind of token? If yes, why the exchanges can still do the exchange between Chinese Yuan and Bitcoin? Or did the token mentioned in the statement actually mean the coins other than Bitcoin? We don't know because the statement was not clear on it.

Notwithstanding the above, I think the exchange between Bitcoin and other ICO coins is not allowed in China based on the principles of the statement and as a matter of fact, the major exchanges in China have stopped the exchange between Bitcoin and other ICO coins.

Currently, Chinese people can still buy Bitcoin using Chinese Yuan and sell Bitcoin to get Chinese Yuan. The major exchanges in China can still accept the cash deposit from the Chinese investors or refund the cash to the Chinese investors, which means their bank accounts still work. But whether they can keep doing that, we will have to wait and see. Right now, nothing is sure...

Added: please see my translation of an in-depth report on the recent ban in China: https://medium.com/@YaoLiang/china-says-goodbye-to-bitcoin-exchange-the-destruction-of-the-worlds-biggest-bitcoin-market-8ff015d5e59a

Sorry that the language may not be perfect because I did it in a rush but it should be readable.

[zoolz]

Interesting that this had a big effect on some coins that didn't even have an ICO. However most things are recovering now so it will be interesting to see what long term effect this ban has.

[Sir Legend]

Chinese country is the most complicated and many rules, I'm not sure this rule will make chinese people stop making coin (ICO). Chinese people are so creative, so even though in banned they will continue to work because this is profitable.

[lottery248]

luckily i am living in hong kong, it is still good for us to create an ICO. however for china, this ban is really ridiculous that the scamming with ICO in regard of cryptocurrency throughout china, IMO, is low compared to Russia or europe, unless with VPNs.

no good for China, they are wanting to centralise everything.

[fortunecrypto]

While you wait for translation go look at the prices of NEO and BNB. Neo is down to $17 dollars from like 34 today, and BNB is down to .61 cents from $1.70 or so today. Absolute bloodbath.

As long as Chinese government enforced restriction in ico this scenario will continue, many ico are now restricting chinese to invest in their ico to protect their company and their investors as well, well see how it's going to be after a month or two.

[MattHoo]

It seems like it's a policy of the Chinese government to protect the citizens from fraud with the ICO projects. Because there are many ICO projects created by someone to treat investors. So when lots of the ICOs became a fraud, the China's acting quickly to make regulations on it. It due to Absolute bloodbath as well. Hope the market turn to be good.

[JamesIV]

It seems like it's a policy of the Chinese government to protect the citizens from fraud with the ICO projects. Because there are many ICO projects created by someone to treat investors. So when lots of the ICOs became a fraud, the China's acting quickly to make regulations on it. It due to Absolute bloodbath as well. Hope the market turn to be good.

That will protect us. Now people can't create ICO ez. avoid scam. We can verify information about dev

[lehoang3369]

Although I can not understand parts of China. I think one of the reasons why China prohibits ICO in their country is that many ICOs are scams and scams. They do this to secure the money of their citizens. But it is their loss because not all ICO is cheating there are some good ICOs out there ... And I think there is also hidden sense about why they forbid ICO

[BartS]

Yeah ICO is official banned in China as it was kind of illegal fubdraising of ICO without any rules and regulations therefore China had to ban ICO. One of the reasons was ICO being banned was that there were many fake or scam ICO which would harm traders and other users.But I also don't know what is true as there are many fake news about it topic going on,just to start panic among users.China had done the right thing I think.

The only right course of action is to wait and hold, do not sell any coins until you are sure that what you read is not a rumor spread by someone trying to gain something from you and other people then and only then you should consider your options, the market has gone down and it is below 4000 the price seems to get a little more stable, just analyze the situation and based on information not rumors take the right decision for you.

[swaptaker]

Why do you think that happened in China?

Communist party, total control, party members or relatives that got scammed, idiots in charge of laws...or simply put... because it is China.
Respecting the laws in China is impossible and that's why nobody does. That's why nobody cares abut them 'banning" something for the x time last years.

Great decision from China, although bitcoin took a hit in the last couple of days, seems like the effect wasn't permanent and will help regulate ICO.

They don't want to regulate it.They just want to stop them.
And nobody with a brain will invest in an ICO accepted enforced and controlled by the government.

Capitalist countries and communist countries have ideological differences but when it comes to protect themselves and their interest they are basically the same, China is banning icos if at some point they ban cryptocurrencies in general that would be awfully similar to what the US did when they banned gold ownership.

No matter if a country is communist or capitalist, they always take their own benefits whn it comes to their advantage. Their ideologies doesn't change this. USA or China are the good examples.

They tried to ban all ICO, let's see what's gonna happen.

[erik m.]

Though truly profitable, ICOs are considered scams by many but there are few that are truly legitimate. Just the right choice for China because these ICOs are targeting the people of their country because there are many crypto currency investors in China.

Unless it has long term success, ICOs are only profitable to early adopters (if the token is not launched below the ICO price, of course...) and a few other investors who buy before the pump.
The point is, it's not hard to understand that most ICOs will not have long term success, and many people will have to learn the hard way.

[mx667]

I think it's a policy of the Chinese government to protect the citizens from fraud with the ICO. As we know there is many ICOs became a fraud, and China's acting quickly to make regulations on it. Nothing bad can happen if every ICO developer records their name on the official government list to become a legal company. CMIIW.

Hmm.. maybe China people should be careful and smart to chose some ICOs. So that they dont get banned. ICOs have so much useful things. It can give us financial freedom, knowledge, and many more. By blocking them isnt that bad ? I guess China people should be careful and not bann the ICO.  How do you guys think ?

[jekjekman]

Though truly profitable, ICOs are considered scams by many but there are few that are truly legitimate. Just the right choice for China because these ICOs are targeting the people of their country because there are many crypto currency investors in China.

Unless it has long term success, ICOs are only profitable to early adopters (if the token is not launched below the ICO price, of course...) and a few other investors who buy before the pump.
The point is, it's not hard to understand that most ICOs will not have long term success, and many people will have to learn the hard way.

No ICO's that specifically targeting China, it targets the whole world especially those who really in the cryptocurrency scene now, I really don't know why Chinese government made a move like this to their citizens, it seems that their cyber authorities is so great that they can monitor every financial flow in their economic growth and see that most of the money of their people is moving inside the crypto world.

For me ICO's are simply risking your money because you trusted that company who made that platform to be successful in the future, unless you are just investing blindly that you will not take time to study what is the background of the ICO itself.

[aeternus]

Why do you think that happened in China?

Communist party, total control, party members or relatives that got scammed, idiots in charge of laws...or simply put... because it is China.
Respecting the laws in China is impossible and that's why nobody does. That's why nobody cares abut them 'banning" something for the x time last years.

Great decision from China, although bitcoin took a hit in the last couple of days, seems like the effect wasn't permanent and will help regulate ICO.

They don't want to regulate it.They just want to stop them.
And nobody with a brain will invest in an ICO accepted enforced and controlled by the government.

Capitalist countries and communist countries have ideological differences but when it comes to protect themselves and their interest they are basically the same, China is banning icos if at some point they ban cryptocurrencies in general that would be awfully similar to what the US did when they banned gold ownership.

No matter if a country is communist or capitalist, they always take their own benefits whn it comes to their advantage. Their ideologies doesn't change this. USA or China are the good examples.

They tried to ban all ICO, let's see what's gonna happen.

All the governments of the world only care about having more power and more control over their citizens and that is why they hate bitcoin, bitcoin protects their citizens form their governments by giving the power of money back to them and away from governments.

[BartS]

It was a matter of time, in fact I’m a little surprised that this did not happen before, maybe the Chinese are very busy on something else, even some member of the forum were asking for solutions about a way to stop or at least reduce the number of scam icos appearing in the forum and it seems that the Chinese government is going to help with that, since less money is going to flow to icos.

I think they may have been looking at crypto's already starting when they investigated the fake trading volumes around Feb-March this year. And when the price ballooned to $4000-$5000 this month, they can no longer ignore if. So they step up specially stopping fake or scam ICO, specially that a lot of Chinese has been investing on it ever since. I guess they just want to protect their people against it, but the timing of the declaration is somewhat off.

That is just an excuse, they will try to say that it is for your own good when the only reason they are doing this is to protect themselves and to avoid losing their grip on the population, that is why the Chinese were investing in bitcoin, altcoins and icos in the first place since it allowed them to get a way from that iron fist control they experiment everyday in their lives.

[gabmen]

Well that's to be expected. China doesn't want anything to go under their noses without them having some kind of control. Though these icos admittedly can cause people to lose money as many of the are scams, btc is quite different as well as trusted alts like ether

[StarofBTC]

It seems like it's a policy of the Chinese government to protect the citizens from fraud with the ICO projects. Because there are many ICO projects created by someone to treat investors. So when lots of the ICOs became a fraud, the China's acting quickly to make regulations on it. It due to Absolute bloodbath as well. Hope the market turn to be good.

That will protect us. Now people can't create ICO ez. avoid scam. We can verify information about dev

China has given the view that it was trying to protect the investors from scams and frauds. Its officials also said that ICOs were a disturbance to their economy so it was the need of time to make the unregulated regulated but before that they were supposed to ban ICOs which will be resumed soon.

[BartS]

Well that's to be expected. China doesn't want anything to go under their noses without them having some kind of control. Though these icos admittedly can cause people to lose money as many of the are scams, btc is quite different as well as trusted alts like ether

Governments want to have control of their population but I think they are reaching a very dangerous level of power and if things keep going in this direction I will not be surprised if people rebel, not with violence but taking measures that do not allow a government to control them, encrypting their computers and communications to make it harder for governments to spy on their population and with the use of bitcoin they will avoid feeding the big governments that we have by denying them taxes.

[Yakamoto]

Well that's to be expected. China doesn't want anything to go under their noses without them having some kind of control. Though these icos admittedly can cause people to lose money as many of the are scams, btc is quite different as well as trusted alts like ether

Governments want to have control of their population but I think they are reaching a very dangerous level of power and if things keep going in this direction I will not be surprised if people rebel, not with violence but taking measures that do not allow a government to control them, encrypting their computers and communications to make it harder for governments to spy on their population and with the use of bitcoin they will avoid feeding the big governments that we have by denying them taxes.

You're implying that people would rebel in the first place. Most people are comfortable with what they have and what they do, and they have no issues with being a tax machine if they manage to keep their bread and circuses. Of course, they likely won't even have those for very long. If you've ever read "The Hollow Men" and have some explanations and interpretations, that is essentially the path the world will go down and it won't change unless people cannot get their welfare, food, or money in general.

Universal Basic Income will cement government control, should it ever get passed in any significant manner.