The most discussed news in the crypto community in the beginning of September was the ban of all ICO in China. And now rumors about the closure of crypto exchanges. A joint statement of the People’s Bank of China and other state commissions announced:

1. Organizations and individuals in China are prohibited from raising funds through ICO

2. Platforms for fund raising can not provide trade and token exchange services

3. Banks and financial institutions should not engage in activities related to ICO

4. Organizations and individuals who have already raised funds through ICO are required to return money to investors.

So, the ban in China touched not only the subsequent ICO, but also those that are already over or in the process.

After the ban was published, the ICOCOIN platform owned by the BTCChina Exchange ceased operations, having only worked for a week. The Chinese sites ICOINFO and ICOAGE were also closed down.

In two days the price of bitcoin fell by almost $ 1000, losing 20%. The Ethereum price fell by more than 30%. In general, all the crypto-currencies from the top ten felt the consequences of the ban, losing 20% ​​-30% of the cost.

Hong Kong is not against

On the other hand, Hong Kong, which is a special administrative region of China, is not in a hurry to destroy the prospective market. A more liberal framework is used here than in continental China, and rules are being drawn up that largely repeat the policy of the US and other Western states. Those. This is not a complete ban, but rather a restriction on the activities and warning of investors about the risks.

For example, Julia Leung, Communications Executive Director of the Securities and Futures Commission (SFC), expressed concern about the increasing use of ICO to raise funds in Hong Kong and other countries. She noticed, “… those who participate in ICO, should know that some ICOs may be subject to the laws on securities of Hong Kong.”

Maybe Devil is not so black

Due to the growth of the crypto-currency boom, Beijing has been developing a plan to reastrain the ICO market for some time. So, in August, the People’s Bank of China held a meeting at which possible options for limiting the conduct of ICO were considered. But, apparently, the Commission on Securities and Futures of the country and the Commission for the Regulation of Banking Operations found no other effective solution, except for a total ban.

However, it seems that the ban is temporary. It is unlikely that China, which has become a global center for mining and bitcoin trading, is ready to abandon completely the promising ICO market. The opinion is expressed that in the current situation, Hong Kong acts as a “sandbox”, in which they will try various options for ICO regulating.

It is too early to draw any conclusions, however, representatives of the blockchain community are optimistic and confident that the development of new technology can not be stopped.

Luis Cuende, Aragon co-founder:

“Some governments and officials will try to put an end to this movement and, for the sake of it, resort to unreasonable and extreme measures to do this. Nevertheless, thanks to the Internet and cryptography, there is no way back. I am very optimistic about everything that is happening, and I’m not surprised at all”.

Trevor Koverko, Polymath CEO:

“China’s decision on ICO is a gift for everyone else. Regulation is being developed and it is necessary, but it is important to note that ICO as an instrument will remain. The question is where will they go? “

We are also not going to stop and we are sure that Rocket ICO will have a wonderful future, despite governments’ decisions of any state. Very soon a completed platform will be presented, but right now you can take part in pre-ICO www.rocketico.io

And what do you think about the China’s ICO ban? Share your opinion in the comments!