China news on ICO and how the crypto world turned red

Remember a few days ago, when we mentioned how country regulations can affect bitcoin price? It’s now become a clear proof. We saw what happened in the past few days with China banning ICOs and phibiting third parties to link their acitivites to ICOs. This massive news resulted in a dramatic drop on all coins price and left us with tons of questions and concerns. The PBoC (People’s Bank of China) announcement has been confirmed and officially released, causing a major gap in the ICO market (considering that China represents approx 40% of the total ICO industry). What happens now is that more responses have emerged, such as the one US gave, showing they are looking for a clear regulation and boundaries in the future, but also South Korea, which stated they will include ICOs in laws regarding fund raising. PBoC has given a clear warning that their new regulations will stop any financial organization or individuals to connect with launching, clearing or promoting ICOs, and even digital currencies in general. This still leaves a lot of unknown territory when it comes to cryptocoins in general and how will China manage this topic in the future.

The market reaction was quite intense, as we saw red in front of our eyes starting yesterday and following today, users are becoming increasingly chaotic and tend to extrapolate the China ban to Bitcoin and overall cryptocoins progress. What do we know for sure? We know some of the ICO exchanges have started refunding users, but a very large number of them are still waiting for further and clearer instructions from regulators. We also know that Bitcoin dropped over 20% from its record on Saturday, and the whole market went down with almost 19% since their peak. However, for many people this is merely an opportunity of buying more bitcoin or crypto in general. We don’t know for sure what is to happen with the market, but definitely witnessing a mile stone of Bitcoin and its digital relatives.