Is China ICO Ban temporary?
Sep 09, 2017 Posted / 2941 Views
This week earlier, the chinese supervisory body banned businesses from raising funds using ICOs, the most modern blockchain related investing trend. This sequentially has impacted the Bitcoin market.
Up till now, ICOs have raised around $1.6 billion in 2017 with 65 launches in China adding some 2.6 billion Yuan or else $398 million. It is not the first time China has inspected digital currency. Prior this year, Chinese digital currency exchanges for the time being closed down customer withdrawals to improve their anti money laundering controls at the request of financial regulators. The suspension of services lasted for months. This caused a temporary chill in the local Bitcoin market, thus causing China to surrender its position as the world's largest Bitcoin market.
The ICO platform KICKICO released a statement this week proclaiming that as a consequence of the ban, the firm has postponed its planned Chinese-Russian Cryptocurrency Fund launch.
As hinted by the Chinese official China ICO ban is temporary and will introduce licensing soon. The fear, uncertainty and doubts over the China ICO ban seems to be ended. After creating a worldwide panic this week with the declaration of an ICO ban, a Chinese official has made it clear the situation saying that China will look to recommence ICOs in the future after setting up licensing regulations, which was done by means of an interview on CCTV-13, which is a state run national television channel in China. When he was asked about whether the prohibition of ICOs could end advancements in the Blockchain Space, the official replied that this was not the purpose of the ban and it was intended to guard investors.
He publicly said this was a 'Stop' and not a 'Forbidden'. The interview continues to mention Finance and technology and the advantages of it. The significant take home is that talk about regulation technology, a bit that might be applied in the prospect to permit ICOs that actually require the money to be controlled and licensed. "China’s ICO ban is likely a temporary stop rather than a permanent decision", is said by the deputy director of the Chinese Academy of Social Sciences, a top think tank based in Beijing.
ICOs could be an influential element of the growth of cryptocurrencies, having already held the imaginations of investors and business leaders with their feasibility, letting a way of legally structuring and documenting share ownership reasonably and requiring no third parties. Even as the ICO publicity and market becomes similar to the 90’s net bubble, they are admiring and representing a credible use case for blockchain technology. China settling on that ICOs need regulation in the long-standing is quite probable, as the option would be very harmful for the country to limit its personal technological progress and contributions to the field. China is recognized to have a preference of their own adaptation of technologies, and with the intention to expand them, their extensive ban would require to be lifted, creating the view for the future of ICOs in China not as bleak as they at present come into sight.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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