Bitcoin has fallen from 8% to 4,309 dollars on Monday for a big step in China.
China has banned the introduction of primary currency (IOC) - funding for the digital currency outside the regulatory framework - and to control the business of digital coins to stop financial risk and possible social isolation.
On Monday, the People's Bank of China said plans for collecting such funding were declared invalid and 90 IOCs introduced in the mainland included fraud.
"Any form of fund collection should be stopped immediately by issuing digital currency," the central bank said. "These projects, which are already in place, will have to reinvest the fund to the investors," it said in the circular, which supports the securities and banking regulators and handles the taskforce under the State Council, which is responsible for internet finance security.
Just a few weeks before the announcement, China's National Internet Finance Association, a government-backed industrial corporation, warns investors of fraud and illegal behavior in such fundraising schemes just weeks before the announcement.
As part of the Anti-Corruption Dialogue of the United and United Communist Party, mainstream financial regulators have taken stern positions in the internet currency earlier this year.
Bitcoin, CryptocoRanjie, has become especially popular with mainstream investors over the past year, which has put pressure on Beijing to keep the local currency stable due to capital flows.
The central bank gave the executives of the main bitcoin trading platform at that time, that they must comply with foreign exchange rules because efforts have been made to control money laundering in China.
The emergence of Bitcoin just hit a snap
According to industry officials, corrupt officials had a way to purchase currency for illegally transferring their personal assets outside the capital.
The IOCO, which started the digital currency for the collection of money by creating and selling digital "tokens", spread quickly over the mainland this year. The issuer generally uses the money to invest in digital currency trading, which, if successful, shuts the price of tokens
The Beijing Internet Finance Association estimated that 65 euros have completed the transaction in the first seven months of this year, estimated that more than 105,000 private investors of the fund are taking part in 2.6 billion yuan (US $ 398 million) of the fund.
Wang Feng, chairman of Shanghai-based financial services firm Yeh Long Capital, said, "Chinese investors have a tendency to pursue quick returns". "The regulators obviously end up this problem."
A Shanghai-based entrepreneur whose company said in an ICO issued this year, the company has been influencing the ban, whose intensity was beyond its expectations
Coo Yin, chief strategist of the energy blockchain labs, said, "This is the hardest task in controlling China's Internet currency." "Although the market is still awaiting clarification on specific regulations after issuing notification of regulators, it can be ensured that for the emergence of cryptocurrence of serious injured people for Ioos issuing, investor and trading platform, China has been prepared."
Analysts say the ban will not apply to Chinese investors outside of ICICI's, as some of them may take home regulations by participating in offshore fundraising activities on the Internet.
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what is the future? in simple word-positive or negative? plz put some light...
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Thanks for sharing! I hope the market gets better for the future.
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this is great content for steemit arifulsms!
Upvoted. For insights on the Chinese ban and impact on the markets: https://steemit.com/bitcoin/@thoughtchain/why-today-is-the-perfect-storm-for-bitcoin @thoughtchain