Bitcoin News Today with the leading story on the ICO clamp down recently and the latest move to officially outlaw ICO’s. As reported by Coindesk, “In a joint statement issued by seven financial regulators today, the world’s most populous nation outlined why it believes that nascent fundraising mechanism is illegal under the domestic law. Authorities backing the statement include the People’s Bank of China, the Central Network Office, the Ministry of Industry and Information Technology, the State Administration for Industry and Commerce, the China Banking Regulatory Commission.
A translation of the statement reads:
“ICO financing refers to the activity of an entity raising virtual currencies, such as Bitcoin or Ethereum, through illegally selling and distributing tokens. In essence, it is a kind of non-approved illegal open fund raising behavior, suspected of illegal sale tokens, illegal securities issuance and illegal fund-raising, financial fraud, pyramid schemes and other criminal activities.”
The Bitcoin price, as well as other altcoin prices, have dipped in reaction to this news, however, we saw a similar dip in price in January 2017 when the People’s Bank of China swooped on Bitcoin Exchanges and imposed regulation – At this time, Bitcoin was around $1000 – fast forward to now, the Bitcoin price is over $4000, a significant growth in value.
Numerous ICO’s have been popping up over the past year and as a result, caught the attention of regulators such as the SEC and now the Peoples Bank of China. With this new way of funding, startups need to take precautions to avoid ending up in tears.
The ICO payback process to investors has begun in China.
Regarding more regulations, the Israeli government is looking to regulate ICO’s while South Korea want to regulate digital currencies.
The total market cap of crypto currencies surpassed $170Billion but during the past few days, dropped to $146Billion with Bitcoin making up close to 50% of the value. Some would say this is the time to buy.
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