Yesterday, on August,4, People’s Bank of China, Cyberspace Administration, Ministry of Industry and Information Technology, State Administration for Industry and Commerce, Banking Regulatory Commission, Security Regulatory Commission and CIRC issued a notice on prevention of tokens financing risk. To put it simply, ICO were forbidden illegal. What is more, already finished ICOs are required to refund the investors. However, a lot remain unclear on how exactly refunds will be made. Some of ICO platforms, like ICOage, only make refunds to those investors who have made purchases but have not received the tokens yet. Exscudo comments with regard to this situation.

How ICO ban in China will impact the market

Although some media sources at once connected the recent cryptocurrency market fluctuations and more particularly the Bitcoin price to this law, we believe there is no direct dependency here. Neither the peak price, nor the current one reflect the China situation. In fact this law only affects China citizens and Chinese economy. Crypto economy is the reality already and it is here to stay. Cryptocurrency market capitalisation is now $144,338,451,544 (by 05.09.2017) and it has a huge growth potential. With this law China is just placing itself outside the the whole crypto economy. Just like the US did by restricting ICO activity. Basically, the two biggest economies – China and the US – decided to go away from this market. However, there is still a probability that investors from these countries will make operations with cryptocurrency via grey channels, and the grey market of cryptocurrency will grow there, which is not good at all.

Will this law have an impact on Exscudo?

China ICO ban will not affect Exscudo at all as we are a EU company. We were very careful when choosing a country to register Exscudo, and now we see that we made a right choice. Europe regulators attitude to cryptocurrency is very wise and deliberate: they regulate, but not forbid.

What about investors?

During our ICO we were not focusing on China market. Besides, Exscudo does not track the origin country of our investors. In fact it is hardly possible: we distributed tokens by Emails, and many Chinese have their mailboxes not on the .cn domain. We believe that citizens of any state should act and make investments in accordance with the state law, and this is their responsibility. We are not giving up the idea to enter Chinese and US markets, but we understand that it requires greater responsibility and effort from the legislative point of view.