The Chinese government ban on cryptocurrency has not been so effective with recent activities of Token 2049 Hong Kong conference acting as proof that Chinese citizens are still interested in cryptocurrency. China is looking for new ways to invest in crypto while others go blockchain technology way.
According to Jack Lu, founder, and CEO of Wanchain, the Chinese government ban on crypto was of goodwill, and it aimed to prevent criminal activities such as money laundering. But the ban has lead to a sprung of crypto activities underground. The ban has pushed investors to look for alternative ways to invest in ICOs with underground ICOs being one of them.
The government of China, on the other hand, is embracing blockchain technology but placing a ban on initial token sale. The acceptance of blockchain technology in China has lead to big companies investing in it such as Alibaba, Tencent, and Baidu. Lu said “In future, we are likely to see these companies going head to head in the blockchain technology space”
Regulation Control Trade In ICO
The volatility of ICOs and the damage it may cause the economy is what might be pushing other governments to ban cryptocurrency. But one may ask why can’t these governments place strict rules and regulations that can govern token sale in their countries? Regulations could govern this space well and everybody benefits.
For instance, the Japanese authorities have come up with regulations that help govern cryptocurrency trading. To trade in cryptocurrency one has to employ an independent auditor, undergo KYC/AML checks and segregate their customers’ asset before been issued with a trading license. The regulation in place has seen more than 90 licence applicants waiting to get their ICO licenses.
According to Mike Kayamori, CEO of Quoine exchange group and regulated ICO platform. Japan has a very vibrant crypto economy and regulating it is the way to go to reap the benefits. Mr. Kayamori said this before raising $105 million from his company token sale. Although there are still challenges here and there like the hack on Coincheck, cryptocurrency space will bounce back in future. The hack has also caused drawbacks on the issuance of the license with license applicants put on hold. The hack has placed Japans cryptocurrency space back to the drawing board with many wondering why the regulations were not able to prevent such hacks.