In the wake of China’s ICO ban, what befalls the concept of cryptocurrencies?
The most important event while in the cryptocurrency world recently was the declaration on the Chinese authorities to seal on the exchanges where cryptocurrencies are traded. For that reason, BTCChina, among the list of largest bitcoin exchanges in China, asserted it may be ceasing trading activities by the end of September. This news catalysed a pointy sell-off that left bitcoin (and other currencies for example Etherium) plummeting approximately 30% underneath the record highs that were reached the 2009 month.
So, the cryptocurrency rollercoaster continues. With bitcoin having increases that surpass quadrupled values from December 2016 to September 2017, some analysts predict that it may cryptocurrencies can get over the recent falls. Josh Mahoney, a niche analyst at IG comments that cryptocurrencies’”consider your experience lets us know that [they] may brush these latest challenges aside “.
However, these sentiments don’t come without opposition. Mr Dimon, CEO of JPMorgan Chase, remarked that bitcoin “is not going to work” and that it “is really a fraud... worse than tulip bulbs (in mention of the Dutch’tulip mania’of the 17th century, recognised as the world’s first speculative bubble)... that will magnify “.He goes to the extent of proclaiming that he would fire employees have been stupid enough to trade in bitcoin.bitcoin trading
Speculation aside, what the heck is actually going on? Since China’s ICO ban, other world-leading economies take a brand new investigate how a cryptocurrency world should/ might be regulated inside their regions. As an alternative to banning ICOs, other countries still recognise the technological benefits associated with crypto-technology, and are considering manipulating the market without completely stifling the development of the currencies. The important issue for these economies is to work out how to repeat this, as being the alternative nature in the cryptocurrencies don’t let them be classified under the policies of traditional investment assets.
These countries include Japan, Singapore as well as the US. These economies seek to ascertain accounting standards for cryptocurrencies, mainly in order to handle money laundering and fraud, that were rendered more elusive as a result of crypto-technology. Yet, most regulators do recognise that there definitely seems to be no real advantage of completely banning cryptocurrencies a result of the economic flows that they can carry along. Also, probably because it’s difficult to seal around the crypto-world as long as the web exists. Regulators can just focus on locations where they just might exercise some control, which is very much where cryptocurrencies meet fiat currencies (i.e. the cryptocurrency exchanges).
While cryptocurrencies find a way to come under more scrutiny as time progresses, such events do benefit some countries like Hong Kong. Ever since the Chinese ICO ban, many founders of cryptocurrency projects are actually driven on the mainland for the city. Aurelian Menant, CEO of Gatecoin, declared this company received “a large number of inquiries from blockchain project founders perfectly located at the mainland” and this there’s been an observable surge in the number of Chinese clients registering to the platform.