China’s regulators have been taking a hard stance on the future of ICOs, investigating their creditability and potential illegal fundraising. Regulators in other countries, like the US SEC, have issued statements regarding ICO restrictions, however, China has just banned ICOs and they are now illegal in the country.
Cryptocurrency Market Performance
Total Market Capitalization
The cryptocurrency market has had an impressive post-fork run, with bitcoin surging around the $5000 mark and total the market cap. peaking to almost 180 billion-dollars. With the recent regulatory concerns in China, within two days, the market cap. has dropped approximately 20% and it's now at about 148 billion-dollars.
Bitcoin 1-Hour Chart
New Investment Framework
The current market uncertainty for ICOs is taking its toll with investor confidence. Like securities, regulators must clarify how to proceed with a legal frame work in the ICO process. New blockchains should consider organizing their ICO crowdfunding more like equity crowdfunding. This would help mitigate the risks regulatory bodies are concerned with for the blockchain and their investors.
A Canadian blockchain company, eXeblock Technology Inc. (founded by CEO & President - Jonathan Bahai) is well ahead of the sector and is a registered firm on the Canadian Securities Exchange (CSE). Similar to the SEC and most global regulators, the Canadian Security Administrators (CSA) has recently stated concerns that ICOs should be treated like security investments. Going forward, it seems that ICOs will follow the same legislative framework as securities.
eXeBlock: https://www.exeblock.com/