China didn’t ban ICOs, but temporarily stoped it to protect investors.

This week, news came out that China will ban all initial coin offerings but now we can firmly say that we can’t talk about a ban, rather a stop, for the moment. This temporarily ban may result in more reliable ICO’s and even more secure investments.  

An interview with a Chinese official from Institute of Finance and Banking brought to light more information about the situation of ICOs in China right now. Although the person interviewed is not a major government official, his position has to be more or less the same with the bigger officials since the interview took place on CCTV-13, a state-run national television channel in China. The full interview can be watched here.

Apparently, all this action was made to protect investors because ICOs were not regulated and the risks were very high. But since we are talking about China, there may be some other reasons behind all of this, reasons that may be hard for us to guess at the moment. Maybe is all for a more controlled market, a theory which can never be out of the question.

Licensing will start soon and the temporary stop will be lifted but is not clear, in what terms.

Since China temporarily banned ICO’s and put exchanges under review, Bitcoin price dropped from more than $4,000 to less than$3,000 in a week . As some major Chinese exchanges have announced their closure some mysterious things happened on Bitfinex.

Huobi and OKcoin were permitted to operate for another month, after the nationwide ban on exchanges and this started a period of instability.

btc drop after china ban exchanges

We cannot say for sure, that China ban on exchanges, impacted so much on Bitcoin price as seen in the chart from coinmarketcap.com, on 15th of September the price got below 3000$.

btc price rise again

Over the last two days, Bitcoin price started to rise and on 18th of September hit again 4000$.

We will have to wait for the chinese government to regulate ICO’s and all Chinese exchanges to stabilize and then we may be witnessing Bitcoin price new records by the end of the year.

 

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