ICO ban in China might help regulate ICOs

Espen Moen KvellandFintech Comments

China latest move to ban ICOs might be helping push regulating the crazy world of ICOs

Sheng Songcheng, a senior official of the central bank of China, said during an interview with China Business Network that blockchain is a promising technology and such scrutiny will only push the industry toward a healthier path.

“To eliminate the market frenzy once and for all so that everyone can start again by following the new rule is a very meaningful strategy,” Sheng said. “Cryptocurrency is the most well-known practice of blockchain. It is impossible to stop it, but it is time for efficient scrutinizing.”

Chinese startups have so far raised about $400 million so far this year, this recent ban will set an effective stop on the practice. After the ban, we saw a 20% fall in the Bitcoin value, this might be related to China having the largest number of Cryptocurrency owners.

As a CEO in a tech company, I’m hoping that the ban will push forward new regulations and bring some more order to the chaos.

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