Thursday, 5 October 2017

China Brings Crypto Coins: A Sensitive Blow To Ban ICOs

Bitcoin suffered over $ 5,000 last weekend. But China acts like a game breaker.

                China is entering into new regulation for crypto coins. The central bank of the Asian country, which is trading in crypto currencies, has now paid that the so-called initial coin offerings (ICO) are illegal. Initial coin offerings offer the opportunity to launch a new crypto coin. The underlying company then issues units of the new digital currency, in exchange for leading crypto coins such as bitcoin and ethereum.

This year, the total number of crypto coins has exploded, and there are major doubts about wildlife around the launch of new crypto coins in total, there are now more than 1,000 crypto coins in circulation, with a total market value of around $ 150 billion. However, bitcoin is well worth a market value of about $ 70 billion.

China puts brake on wild growth crypto coins.

The Chinese Central Bank has investigated and now decided to act strictly. Thus, the bank is prohibited from providing services with the above-mentioned initial coin offerings.

China is not charmed by the crypto coins because of their extreme volatility, the lack of regulation and the sensitivity of the coins to illegal practices such as money laundering.

Bitcoin is busy with an unprecedented march in 2017. The most important cryptomint started the year at $ 968 and hit in May.

Then the price dropped below $ 2,000 due to the uncertainty about a technical issue. But from August, bitcoin began to rise again to a level of more than $ 5,000 last weekend. This followed a sharp drop in last Sunday and Monday. Monday morning, bitcoin scored around $ 4,400.

Digital currency like bitcoin is managed through decentralized computer networks, with Chinese players taking a dominant position in the bitcoin market.

The Last time this happened, the love affair between China and the cryptocurrency bitcoin did not end well. Few years back in December 2013, the Chinese central bank put a barred financial companies from doing anything with bitcoin, and the price dropped from $1,092 to $102.

However, this love between China and bitcoin has been rekindled as the crypto currency quietly rose from $250 in August 2015 to $535 now.

“It actually went down for so many reasons in the year 2014; the major one was that it was too high. Current day and age, Chinese activity in bitcoin business is driving or pushing the ascent in the price of bitcoin but outside these factors there are no other factors going on right now,” says crypto experts.

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