China Bans ICO Fundraising For Cryptocurrencies
Cryptocurrencies like Bitcoin are a hotly debated topic among investors. For some, Bitcoins are the product of pure speculative gambling. For others, virtual currencies represent a potential break from central banks. When you consider the latter potential, you must also consider that world governments are likely watching with cautious eyes, likely ready to stomp out any embers that could ignite virtual currency into a mainstream replacement for regulated cash.
Wonder no more, it appears that China is making the first move to truly target the foundation of Cryptocurrencies, such as Ethereum, by cutting off the hand that feeds it. Chinese media outlet Caixin reported that China has passed down stiff regulations on domestic funding of Cryptocurrencies. China has formally banned any project connected to raising money for Cryptocurrencies. In fact, China says it will seek to regulate any projects sponsoring fraudulent practices. This is China calling out Cryptocurrency as a propped up fraud. This is also China lashing out at any practice that seeks to remove leverage and power from the global central banking system which China benefits greatly from.
China has a list of 60 major ICO platforms that are in line for inspection. In total, 7 Chinese government agencies declared that these ICOs are illegal scams. China has also cut off the ability for any domestic bank to do any business with any ICO participating in Cryptocurrency fundraising. China is also stating that any ICO’s holding raised funds for Cryptocurrencies need to promptly return them. China claims this move is to “protect the interest of investors.” Of course, investors thrive from a free market, which China now seeks to dismantle with such regulations. China isn’t protecting the risks of investors, it is protecting the security and integrity of its banking system, a system vital in the subjugation of the masses.
Make sure you read my how to survive a stock market crash guide.
ICO funding for Cryptocurrency is a vital aspect in the further development of virtual currency. The currencies are built on blockchain technology, a technology that tracks exchanges and acts as a sophisticated verification process. This type of sophistication largely threatens paper and coin methods which have much fewer options for detecting fraudulent exchanges.
China is also claiming that Cryptocurrency is too “unmanaged.” This, in my opinion, alludes to China seeking to find a way to reel in Cryptocurrencies like Bitcoin under more government control. Because that’s what oppressive nations do, they seek to oppress through government regulations.
Think the people want Cryptocurrency to expand? Investment companies have already raised beyond $1 billion in funding. In China, that number is a more humble $400 million. All the same, this is a clear message that the world wants unregulated Cryptocurrency technology to get its footing. China’s regulations are a clear declaration of war on those seeking to move beyond central banks in both China and the United States.
China being China, they also stopped a blockchain conference from happening over the weekend. China clearly seeks to totally shut down any aspirations or thoughts of blockchain technology. ICO investors have been advised to turn in non-compliant ICO projects. In other words, tell on your neighbor is being implemented.
This cause Bitcoin to call about 5% or $200 off the near $4,500 price point (Bitcoin doesn’t function from ICO funding, like Ethereum and Altcoins do). To be honest, I’m surprised it didn’t crash it much beyond that humble downswing. Bitcoins and other Cryptocurrencies are volatile in terms of share prices. This is either a result of a holiday weekend, or investors truly are ignoring China’s potential stage setting for other countries, such as the United States, to act similarly. China’s move isn’t overly surprising and one has to assume that countries such as the United States have considered such maneuvers. China’s infrastructure supports such bold market oppressive regulations more than the United States, who would have to be savvier in their dismantling of the Cryptocurrencies.
Cryptocurrencies are a major threat to central banking systems worldwide. They express a model for paying for goods and services that go beyond major bank involvement. Central banks benefit from controlling the masses with things such as artificial currency manipulation. They can flood societies with more printed cash as a way to inflate the domestic GDP. If more money is produced than is needed, this effect takes hold. Central banking control is, in every respect, the most sophisticated method to control the masses worldwide.
Don’t take what I’m saying as me not realizing that Cryptocurrency has true issues. The biggest issue I see in Cryptocurrency is the fact that we have no idea how it washes out. As it stands, speculative investors are merely using it as a device for creating fast revenue through investments. Bitcoins chaotic price fluctuations show that investors buy and sell based on rumors and speculations, not on confidence in the currency. In some ways, investors are harming the end goal, but it would be impossible for ICO’s to turn them off. There is real support beyond “gambling” for Cryptocurrency, otherwise, China wouldn’t be on the attack.
Photo by Rivard
Author: Jim Satney
PrepForThat’s Editor and lead writer for political, survival, and weather categories.