This is what happens if the government has taken cryptocurrency as theirs. Crypto will only be legal if they provide informations or KYC or else, they will consider as illegal and they cannot operate. This is a 100% centralized crypto and im sure government will get taxes not only from them but also for those people who will invest on it.
There are only two options. First, ICOs should reluctantly obey to the rules in order to get investors and Second, they will operate worldwide but not in China. Sometimes getting strict is not really worth it.
Not really! This is only specific to China. China was the first country to react against the numerous ICOs popping up from every part of their country. China made themselves very clear that they would not tolerate any kind of illegal activity where public money is involved. But due to the nature of their communist government, they are just overdoing things!
If you compare the regulations of Germany and Malta, you will definitely get an absolute different picture! China can't create the global standard in crypto regulation. So such kind of over regulation will remain within the limit of their own soil only! That is the reason why China is not a favorite destination for the crypto related companies since 2017. Also majority of the ICO you see, they keep China in their restricted list!
