Chinese regulators put a hold on an Initial Coin Offerings (ICO)
Chinese regulators put a hold on an Initial Coin Offerings (ICO) system of crypto-company monetization. The Initial Coin Offering is a principle in which companies working on cryptographic/distributed solutions, issue tokens as a way of monetizations. In the past two years ICO’s became significant income for the entire industry. Only in 2017 more than 1.2 Billion of dollars were raised from investors following the ICO. Chinese officials are claiming that ICOs are not legal money raising procedures and put a hold on every future ICO. They are reasoning this decision as a way of protecting the investors from the unregulated territory. Indeed, many ICOs served as a smoke mirror for illegal activities and financial scams like a pyramid scheme. This decision made an impact on crypto-solutions market causing it to sink for 20 per cent. There are some indications that China government might allow ICOs again, once they are regulated accordingly. People’s Bank of China, China Securities Regulatory Commission, China Banking Regulatory Commission and China Insurance Regulatory Commission issued a joint statement [chinese] where they reiterated that ICOs are unauthorized illegal fund raising activity.