The blockchain technology has had an enormous success and rapid growth in the majority of the public and private sectors around the world, mainly thanks to the anonymous but at the same time tamper-proof nature of this invention, while China has been favorable towards digital currencies and this technology then they latest action has taken a slight... 180-degree turn. An official committee of the People's Bank of China has moved forward with banning initial coin offerings as legal investments for the region while outlining the reasons behind this move as being protective for the general population. Don't worry, China is still looking positively on the digital currencies and does not plan on passing any more strict regulations on that, now that we got this out of the way let's take a closer look at behind the scenes of ICO bans.
ICO Ban In China Does Not Mean Full Stop For The Digital Currencies
If you were not aware then China was one of the first countries to start exploring and researching the blockchain technology while passing favorable legalizations for the digital currencies use in the country. As a matter of fact, China had stated that they are exploring the possibility of digitizing a good portion of the national currency, Yuan, on the Ethereum blockchain. Reading all of this would make one believe that there should be no roadblocks when it boils down to the Chinese citizens investing into the initial coin offerings but let's see if we can find the string of reason behind this action. The Chinese government is more than open to any new technology, especially when it can benefit their population and reduce daily operational costs of the government by great margins while also adding complete transparency to the money trail thanks to the public tamper-proof ledgers. Banning ICO's comes into play because of the lack of regulations in this fresh market that could protect an average investor. China is going to launch a special agency to investigate initial coin offerings further because of how easily it is to defraud population out of their hard earned digital currencies due to the lack of the regulations right now, backed by the anonymity of the blockchain technology.
Digital Currencies Market Cap $150 Billion U.S. Dollars
The blockchain technology is currently supporting more than 800 different digital currencies with general market capitalization reaching the heights of $153 billion U.S. Dollars! Chinese ICO ban had a short negative impact on the market because a lot of the investors were forced to unload their coins, if you noticed ~80 of the top 100 currencies being down last week then all of it had to do with the Chinese initial coin offerings ban while investors kept pulling out their money. The market has since stabilized over the past couple of days and been back to the steady incline rate. While ICO ban in China may come as a short-term problem then we must say that in our opinion for the long-term nothing will be able to hold down the decentralization that this technology is going to provide.