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Official source: China's ban on initial currency support operations "ICOs" is temporary until the issuance of the licensing program
Hu Jinping, a researcher with the Institute of Finance and Banks, said the academic research institution, backed by the Chinese government, said in an interview with the state-owned National Television Network (CCTV-13) regarding the government's ban on initial currency support operations (ICOs). The Chinese Academy of Social Sciences and its Financial and Banking Institute belong to the State Council of the People's Republic of China, the principal administrative authority of the People's Republic of China. The Chinese Institute of Finance and its researchers are regarded as a government institution and government officials.
Prohibition of the support of the primary currency is only temporary
In his CCTV interview, which was translated by Box Mining, Ping explained that the suspension of initial currency support operations (ICOs) and the government's announcement that these operations as a fund-raising method are illegal are temporary only until financial regulators Local regulatory frameworks and policies are needed for investors and enterprises alike. More importantly, Ping stressed that the Chinese e-currency community must understand that the government did not "prohibit" the initial currency support operations (ICOs), but instead temporarily "suspended" them, indicating the government's intention to resume these operations in the near future . Ping also noted that the Chinese government and financial regulators are currently considering the possibility of allowing currency support operations (ICOs) to raise funds in a controlled environment through the licensing program.
Essentially, if the government decides to legalize and regulate the currency support market, its licensing program will be similar to the structure of the New York State Financial Services (NYSDF) BitLicense program, which requires companies to obtain a state license to work and serve people in New York .
Leave the US platform
Many New York startups left the state because of the non-practical policies proposed by the New York State Financial Services Department and BitLicense. Specifically, even large-scale startups such as ShapeShift, which is one of the most widely used electronic exchange platforms, left New York due to strict state policies with respect to AML and KYC regulations. However, five companies, including Coinbase and Bitstamp, have maintained operations in New York State, where they spent up to $ 100,000 to obtain the necessary licenses.
In the coming months, the Chinese government may launch a program for the authorization of initial currency support operations (ICOs), in an effort to restructure the market, introduce legal eco-projects and emerging blockbuster companies for the sale of currency and fund-raising. On the other hand, it is important to consider that the Chinese government has a history of banning many emerging and innovative technologies. For example, in 2013, the Chinese government and its financial regulators banned the Betcuen on two separate occasions. Where the People's Bank of China "PBoC" banned the transactions of the business and business. But trading activities simply moved to unlicensed markets and the market became more difficult to regulate. Which led to the approval by the Chinese People's Assembly and financial regulatory bodies of the legalization and regulation of the Betquin.
Singapore's optimism
A similar situation could occur on the ICO market. If these operations and emerging blockbuster companies move to Hong Kong, Singapore and Japan, and countries that have expressed optimism about the support of the primary currencies, the ban by the Chinese government will only harm the Chinese blockbuster sector.