China, one of the most important countries in the world in economic terms could cease its Initial Coin Offering ban. During the last September, China has decided to impose restrictions to cryptocurrency trading and Initial Coin Offerings (ICOs). South Korea followed China and in October it imposed a ban on ICOs as well. But it is clear that the ban will not be forever. This year, new regulations could be implemented and ICOs allowed.
China – Initial Coin Offerings Unbanned?
According to Yang Dong, China’s People’s University Law School vice-president, China is preparing new regulations on the cryptocurrency market. During a speech at the Southeast Asia Blockchain Summit, Mr Yang said that the trading and ICO ban would not continue indefinitely.
ICOs were raising concerns on Chinese authorities. In 2017 the ICO industry moved an important amount of money (around $3 billion dollars). But several ICOs were involved in fraudulent activities and some of there were scams. This situation pushed China and South Korea to regulate the market by banning it.
At the moment, the Chinese authorities may be drafting new regulations that would allow ICOs to run in the country under specific requirements. Clearly, the intention is to legitimize ICOs and the cryptocurrency world by protecting investors.
Yang, who is also director of the Centre for Financial Technology, said:
“Good ICO projects are allowed to develop in a legal and risk-controlled environment rather than simply adopting a one size fits all approach. [The China Securities Regulatory Commission] may launch equity crowdfunding pilot program in the near future, which will be an opportunity fo ICO to get in compliance.”
South Korea, that has also been looking very carefully at ICOs, have been softening its stance on cryptocurrency related bans. It is important to mention that South Korea is one of the most important cryptocurrency markets on earth. It moves more volume than Europe. Only the United States and Japan are able to move more money.
Cryptocurrency Mining Ban Not Happening
There were several rumours about the possibility of a bitcoin mining ban in China. But according to local reports, that’s not going to happen. The reality is that China is trying to regulate also the cryptocurrency mining industry. As bitcoin miners consume an important amount of electricity, some cities, towns and industries shave seen electricity price increases.
Bitcoin miners tend to settle their farms near hydroelectric power plants. That allows them to have cheaper electricity and increase their profits. Bitmain, one of the most famous cryptocurrency mining enterprises, has explained that is expanding worldwide. Among the new places where Bitmain could settle its operations we find Canada, Russia and Switzerland.
China will not ban cryptocurrency miners and with new regulations ahead, Initial Coin Offerings may soon be available to operate in the country.
Join the conversation over at Telegram (https://t.me/coinstaker)
Image Courtesy of Pixabay
- Cointipping and Why It’s on Its Way Out - Nov 7, 2019
- Bithoven Exchange Announces New Margin Trading Services For Users After Several Requests - Jul 11, 2019
- Binance Exchange Launches a New Fiat Crypto Exchange Called Binance Jersey - Jan 17, 2019
- VISA Acquires Ripple’s Partner Earthport After Closing a £198 Million Deal - Dec 29, 2018
- Report Says Cryptos Could Soon be Legalized in India - Dec 28, 2018
Know more than others on any Blockchain Party!
Join more than 5000 others to receive the breaking news and weekly summaries! No ICO spam, we promise.
You have Successfully Subscribed!
Tags:BanbitcoinBitcoin Ban ChinaBTCchinaChina ban cryptocurrenciesChina Cryptocurrency BanChina Unban CryptocurrenciesChina Unban ICOsChinese BanCryptocurrenciesCryptocurrency ICOICOInitial Coin OfferingInitial Coin Offering UnbanMinersminingSouth Korea