The crypto industry has not lost much from the ICO ban in China. However, this gave rise to the thought that same could happen to other countries in the region – for example, Japan, and South Korea.
Japan has long been a leader in the use of cryptocurrency. And, Bitcoin is generally an absolutely legal means of exchange. However, despite such a loyal approach, we assume that an ICO ban can still take place in Japan. Thinking backward, there has been a noticeable trend. Interestingly, Many ICO startups moved to countries such as Switzerland and Japan. This trend can bring significant additional tax revenue to these countries. However, let’s hope that no one will spoil anything, and the level of fraud in ICO will cease to grow at an incredible rate.
Eth-Price supposes that registration of ICO will be similar to the registration of foreign companies operating in China. This process forces foreign enterprises to rely on a local partner. The Chinese platform NEO will be able to profit from such a decision. The project can become a partner for overseas ICOs that target investors from China.
Can China lift the ICO ban?
At the end of September, the Cointelegraph reported that China could lift the ban on holding an ICO after the Congress of the Communist Party on October 18. There will be changes in the ruling circles of the country after that. These changes can affect the country’s monetary policy. According to Forbes, after the Congress, the Chinese authorities will have less political motivation for maintaining the ban on holding the ICO. Perhaps, there was something else behind ICO ban from China. Maybe, they wanted to show that they are in control. But, it did not work. As a result, S&P Global downgraded China by one rank.
In September, the Chinese working committee on risk management in the field of Internet finance (it is headed by the Chinese Central Bank) announced a ban on raising funds through the ICO. The committee called the primary placement of tokens an unauthorized instrument of raising funds, which is capable of including financial fraud. In late September, South Korea’s financial regulator announced a ban on raising funds through all forms of virtual currencies.