The second day of the cryptocurrency market shows different reaction to ban Chinese regulators holding ICO. While startups are counting on the attraction of means in such a manner, cancel or transfer your placement, but event organizers canceled the conference, the editors Anycoin.news interviewed several experts the impact of this step on the market ICO, will the market and what regulation to expect from States?
Denis Dovgopolyi, President of the GrowthUP Fund
I think it will have a positive impact on non-Chinese ICO. Chinese wallets have a huge potential and is now part of the money will go for more flow in non-Chinese ICO.
I did not see special problems in regulation. It’s a parallel universe, and so there will always be a jurisdiction where it will be possible to conduct such transactions legally. Not to mention the fact that many ICO are held outside the jurisdiction even without establishing a legal entity. Yes, and the first company project in whose interests is ICO. Here bows ICO <> the account of the company will be increasingly subject to, but with the growth of liquidity of the cryptocurrency, the value of this will fall. Bottomline: in the short term will hurt and confusion on how a long time interval, it will appear as a fluctuation. From my point of view, the number of Scam when ICO and ignoring the KYC/AML have a more serious systemic consequences for the industry.
Sasha Borovik, CFO at CLOUDEO
ICO should be regulated carefully and leaving room to experiment. China not being a democratic country, reacts as is able – hard. Prior to that, China has established its domestic Internet, limiting their access to the www, FB banned and restricted Google. These actions cut off access to the mainstream, but the service remained available for geeks. They are trying to do the same with crypto. But the Blockchain today is geeks. To limit their access to the blockchain and international ICO is almost impossible. Yes, China will be less than ICO and crowdfunding. To do marketing in the country foreigners will be difficult. Otherwise little that will change. The ICO will continue. Will appear innovative and responsible regulation and the blockchain will find a new introduction. No, this is a good and logical development for blockchain – nonsense will be slightly less, international regulators will try to find a more sensible approach, so as not to be like China.
Orestes Havryliak, partner at Axon Partners
China is a country of paradoxes. And on yesterday’s news about the “ban ICO” it would be nice to say in context.
In China, the cryptocurrency is seen as a commodity (since 2013, among others), and websites related to Bitcoin (for example, cryptocurrency exchanges) must be registered in the Telecommunications office (Telecommunications Bureau). Taxation is carried out in accordance with the standard for goods rules. This, incidentally, means that the sale of crypto-currencies may be subject to value added tax (Value-added tax).
Despite the fact that the state closely (to put it mildly) is watching his and other people’s citizens, the blockchain-industry in the country is actively developing from year to year. No Chinese SIM cards can not, to buy and sell bitcoin on crypto exchanges (at least to foreigners), but also to connect to WiFi it is impossible. Like it is obvious that cryptocurrency and distributed technology will not be developed. But no, the conference and other events on bitcoin and decentralized technology, is visited by thousands of people, and krausel with a good marketing in China and prior agreement with the local investment funds and/or individual investors destined for success.
In early 2017 adopted new rules aimed at detailed regulation of the activities of cryptocurrency exchanges. These regulatory actions, however, were aimed at protecting the rights of users of the exchange and again I say that trading in securities without a license in China is prohibited. At the same time, the regulator promised to «keep a gentle attitude to cryptocurrency exchanges». In addition, 2017 was marked by the cessation of activities of several mining farms, but again because of problems with the illegal use of electricity, not the so-called ban on mining.
And now the people’s Bank of China in cooperation with other ministries issued a joint order that already conducted by the ICA and issued tokens violated several Chinese laws. According to regulators, the token sale is illegal fundraising, illegal or financing, or pyramid (depending on the nature of token, as I understand it). Accordingly, the regulator made it mandatory for all token sales cease and all collected on the token shop money – back. Banks and other financial institutions are required to cease any transactions related to the token shop and also inform the regulator of all transactions that have already been committed.
Well, I am sure that this decision will be followed by changes in legislation. According to the text of the order will be separately regulated virtual currency and, separately, the tokenization. And I suspect that the regulation will not be so hard: the order (based on the context, which I described above) is more like a muscle-flexing than the desire to deprive China of cryptobytes.