Over the weekend, China banned Chinese citizens from participating in ICOs. Chinese officials believe ICOs are rife with scams and lack any sort of regulation. Although this ban was mildly expected, it still hurts local Crypto Currency developers who will now have trouble trying to raise funds for their new projects. This could potentially stifle Crypto related innovation from within China.
We saw the Crypto market take a dive this weekend, and although it wasn’t completely related to this announcement, it very well could’ve been the catalyst that started the plunge. All this ban means, is that Chinese Crypto Currency developers are not allowed to raise money through ICOs. This law does not affect Crypto Currencies in any other way. In a perfect world, all coins unrelated to Chinese ICO’s would’ve been unaffected. But as the Crypto market is highly speculative, that’s not what happened.