Crypto Frontline

Could China Reconsider Its ICO Approach?

Could China Reconsider Its ICO Approach?

Could China Reconsider Its ICO Approach?
March 06
11:26 2018

One of the biggest hits for cryptocurrencies in 2017 had come from China, a country that banned foreign cryptocurrency exchanges and also Initial Coin Offerings. The ICO ban took place in September 2017 and at that time, officials from China stated that ICOs had “seriously disrupted the economic and financial order”. Also, at that particular time, the Chinese central bank had prepared a list of 60 exchange platforms that were subject to inspection and report.

Things are beginning to change

The Chinese approach to Initial Coin Offerings and cryptocurrencies seems to be shifting, as there are suggestions from high-ranking officials to implement a digital asset management “approval system”.

The proposal comes from Wang Pengjie, which is a member of the Chinese People’s Political Consultative Conference. The reason for its proposal, as Cointelegraph stated, is the rising capitalization of cryptocurrencies like Bitcoin, Litecoin, and Ethereum. He suggests the Popular Bank of China should work with the China Securities Regulatory Commission (CSRC) in order to develop an “approval system” for blockchain and digital asset management.

He also suggested establishing a national blockchain digital asset trading platform, also regulated by PBOE and CSRC.

Even though these are just suggestions at the time of writing and they all come after moves from the Chinese public institutions that harmed the cryptocurrency market, the tone seems to have changed.

Even though not all ICOs are legit, central governments across the globe are beginning to realize that cryptocurrencies, ICOs, and the blockchain technology have a high potential for the future. The solution should not be banning them, but to implement a healthy regulation that could help the further development of the industry.

China is one of the countries that need to realize this issues and there are hopes this thing could happen sooner than anticipated.

The ICO market exceeded $6 billion in 2017 and the prospects for 2018 are higher since in the first two months there is more than $1 billion raised through this operations. Any negative moves from the governments will make blockchain-based startups unable to have access to the capital they need for development.