ICO banned in China, organizers obliged to return funds to investors

Today, on Monday, it became known that an ICO was banned in China. The ban relates to both individuals and organizations. The authorities called the holding of ICO "illegal fundraising." The reaction of the authorities followed after the ICO significantly increased - this applies to China and other countries.



In a statement made by the People’s Bank of China, together with other departments of the country, it is stated that in the case of ICOs already held, their organizers must return funds to their depositors. Immediately after the document was published, the cryptocurrency rates went down.



Just a couple of days ago, at the auction on Saturday, Bitcoin broke the $ 5000 mark. This is a new record, which, however, was expected by many market players. Now the rate has fallen by more than $ 600 in relation to the maximum value.







Experts believe that the abolition of the ICO may be a temporary measure. The Chinese authorities, according to them, could cancel the ICO in order to better understand this procedure. After all, now the primary placement of tokens is used by very many organizations, this is quite promising at the moment the rate of attracting investment in new technological projects and startups. After getting acquainted with the situation on the market, the regulator may also lift its ban, although so far this possibility looks too illusive.



About the popularity of ICO can speak statistics on the situation in China. Here, as of July of this year, 65 ICOs were held with a total investment of $ 394.6 million. Investors were 105 thousand citizens of the country.