"For whether there will be more regulatory methods, we will need to await purchases from the higher authorities." Excerpts from an meeting with group leader of the China's Community Data Network Safety Direction firm beneath the Ministry of Public Security, 28th February
Imagine your youngster trading his or her savings to choose digital product (in this event, cryptocurrency) he or she doesn't have way of verifying their reliability and value. He or she might get lucky and attack it wealthy, or lose it all once the crypto-bubble burst. Now range that to incredible number of Chinese citizens and we are talking about billions of Chinese Yuan.
Industry is packed with scams and useless ICOs. (I'm sure you've noticed news of individuals giving coins to arbitrary handles with the offer of increasing their opportunities and ICOs that simply do not produce sense). Several unsavvy investors have been in it for the money and would attention less in regards to the technology and advancement behind it.
The value of several cryptocurrencies is derived from market speculation. During the crypto-boom in 2017, be involved in any ICO with often a famous advisor onboard, a encouraging group or a decent hoopla and you're guaranteed at the least 3X your investments.A lack of knowledge of the firm and the engineering behind it, combined with expansion of ICOs, is a recipe for disaster.
Customers of the Central bank studies that almost 90% of the ICOs are fraudulent or requires illegal fundraising. For me, the Asian government needs to make sure that cryptocurrency stays'adjustable'and maybe not too big to crash within the Asian community. China is taking the proper steps towards a better, more controlled cryptocurrency world, although intense and controversial. Actually, it may be the very best move the country has brought in decades.
"With the establishment of related regulations and the co-operation of the People's Bank of China (PBoC) and China Securities Regulatory Commission(CSRC), a managed and successful cryptocurrency trade system could function as a proper method for companies to boost funds (through ICOs) and investors to put on their electronic resources and achieve capital appreciation" Excerpts of Wang Pengjie presentation at the Two Sessions.
Inspite of the cryptocurrency crackdown, blockchain has been getting reputation and ownership in several levels. The Chinese government have been supporting blockchain initiatives and enjoying the technology. In reality, the People's Bank of China (PBoC) have been working on an electronic digital currency and have done mock transactions with a few of the country's professional banks.