China Declares Initial Coin Offerings Illegal

leo25

leo25

Well-Known Member
Silver Stacker
So it finally happened. Next will be America, Russia and everyone else.
This was always going to happen, it amazes me how some people thought it wouldn't.

https://techcrunch.com/2017/09/04/chinas-central-bank-has-banned-icos/

https://www.bloomberg.com/news/arti...-bank-says-initial-coin-offerings-are-illegal

China’s central bank said initial coin offerings are illegal and asked all related fundraising activity to be halted immediately, issuing the strongest regulatory challenge so far to the burgeoning market for digital token sales.

The People’s Bank of China said on its website Monday that it had completed investigations into ICOs, and will strictly punish offerings in the future while penalizing legal violations in ones already completed. The regulator said that those who have already raised money must provide refunds, though it didn’t specify how the money would be paid back to investors.
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I think the refund is for ico's that haven't issued tokens yet

I think this will do good to the coins already in the market

I think the Asian market will turn to coins that already exist
 
Hard to even know what Bitcoin's value really is, as a lot of Bitcoin's volume was used to facilitate ICO's purchases on exchanges.

Just have to wait and see how it all unfold by the end of the year. There is a chance Bitcoin could get back to $1300 USD before the great ICO bubble started.
 
But who trust an 8 ball.
8-ball.jpg
 
Maybe North Korea was the one buying everything up and this is China's way to get back at them. Kim Jong-un will not be happy.
 
Ahh love how the market over-reacts to everything. Just as how Chinese exchanges once stopped withdrawals due to PBOC rulings.

I'll revisit this thread in a few months time to see how things have changed.
 
Altima said:
Ahh love how the market over-reacts to everything. Just as how Chinese exchanges once stopped withdrawals due to PBOC rulings.
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When china stopped withdrawals it was only for a period of time so they could track where money goes, they never said they would stop it.

This article is better. This time they are very clear cut that it is now against the law to operate ico's. If anything i think the market is under reacting. But hey, who the F knows.
https://www.coindesk.com/china-outlaws-icos-financial-regulators-order-halt-token-trading/

Im not sure what to make of this though. This is out of the blue.
The third article states that the regulation on trading platforms shall be tightened, "as of the date of this announcement, trading platforms shall not conduct any exchange business between fiat money and virtual currencies, shall not provide information and price for virtual currency trading.
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The thing is, the ban extends to any current and upcoming ICOs. Apparently, there's been a lot of shitcoin ICOs in China (those I've never heard of) and that's probably why PBOC is stepping in. However, this doesn't mean that they're outlawing their citizens from buying cryptos that's already being traded on the exchanges (AFAIK). If ICOs are a no-go for Chinese citizens, they will have to get them after they're launched on the exchanges. Actually, I'm actually quite glad cos their ICO pools have been butting me out of recent ICOs cos they snap up alot of the presale allocation!
 
I think I read since this announcement 10% of the entire crypto market has been wiped out :eek:

No surprise that pretty much every single one is dropping right now

I guess we wait for the dust to settle and see what happens over the next 48 hours before deciding on dropping currency to pounce on and when?
 
Just a bump in the road...
Nothing will stop the Blockchain evolution !
China's just showing how to kowtow to the Central Banks.
It's like trying to stop the tide with your bare hands.
Majority of people do not understand what's really going on...
 
It's bad news but it's not at the end of the world.

I still remember Bitcoin rallies only a year or so back which were triggered by China trying to implement capital controls. Money started fleeing through the crypto space - basically the opposite of what they wanted.

They may drive it underground and kill off China as a place to run an ICO....but ICO teams can just move and the citizens will still buy it.

Yes, ETH may have been hit hard but the biggest pain would be felt by NEO - which was positioning as the Chinese Ethereum, a platform for launching ICOs. It's had a pretty huge drop, something like 40% on the news.

Remember when the US announced regulation recently the market barely blipped. This correction was due after the run to $5K but I don't think it will be that deep. Volume is already suggesting support may have been found at $4K.
 
Put together the well-known penchant for gambling in China, and the high percentage of scamcoins coming out of the woodwork, and the authorities have put the boot in. Whether the fall-out affects the new exchanges and existing altcoins remains to be seen. It might trigger a closer regulatory examination as more of the ICOs act like unregistered securities. Attempts to write 'honest Ponzis' using Etherium contracts have been made from Day One.
 
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