China Ban On ICO Is Temporary, To Establish Licensing Soon.
The world of cryptocurrency industry was shaken at the news that China is banning ICO's on its country. This is understandable as the Chinese market is a dominant force on the industry's activities. From one reliable report it was mentioned that on Bitcoin mining alone China accounts for almost 20%of world's total
The market reacted by a sudden dip in value in most major cryptocurrencies. The market as always will recover as this is a sunshine industry and has lots of potential for development. What remains to be answered is China's position on ICO's, Bitcoin and blockchain industry in general. In an interview with state-owned national television network CCTV-13, Hu Bing, a researcher at the Institute of Finance and Banking, a Chinese government-supported academic research organization, claimed that the government’s ban on initial coin offerings (ICOs) is only temporary.
Hu Bing further explained that China's position is not to ban but only to suspend ICO in China for the moment and is even planning to resume ICO's operation in the near future. Bing also noted that the Chinese government and its financial regulators are currently considering the potential of allowing ICOs to raise money in a controlled environment, through a licensing program.
What is foreseeable is that when it resumes it will basically operate in a similar licensing program of BitLicense program of New York State Department of Financial Services (NYSDF), where companies are required licenses from the state to operate.
However, China should learn a lesson from what happened to US with regards to regulations. Many start ups left, even giant companies like Shapeshift decided to operate somewhere else. Only, five companies including Coinbase and Bitstamp have maintained their operations in the state of New York, spending upwards to $100,000 in order to obtain their license.
If ICO'ss and Blockchain startups simply move to Hong Kong, Singapore and Japan, countries that have expressed their optimism towards ICO's, the ban on ICOs by the Chinese government will only hurt the Chinese Blockchain sector.
Here is my video version of the article report on Coin Telegraph about the same topic.
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Regulators generally do not care much about stifling business. Even in the US, about 50% of our politicians look up to Mao Zedong as a great leader and are enthused with the antiquated communist ideas of the past. Communist countries have abandoned much of their ideologies, but in the US the mentality is still highly esteemed among many politicians. When Castro died, he got much praise around the whole US and especially our news organizations which loved him.
Does not matter much to me what governments want to do, good or bad, because I don't worry about it. I also quit expecting them to do much in the way of good.
You have an interesting piece of mind regarding regulators and government. What I can say is that you have a strong foundation with regards to your outlook with investments/money as you do not depend on the government or regulators.
Great insights! I believe regulations or not, people will always find a way.
Yes, as Bill Gates puts it..."Nobody can stop Bitcoin (cryptocurrencies) now ."
As usual everyone totally over-reacted to the news which was once again phrased to suit their own purposes. Nice article thanks for sharing and as I said in another comment, now is not the time to panic, instead now is the time to buy!
Totally agree with you @claudiaz. As teh Rotschild's famously said... to create wealth is to buy when there is blood on the streets. Keep calm, and just make smart analysis.