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Steve Nadel Benedicte Gravrand, Opalesque Geneva: The People's Bank of China (PBoC) announced on Monday an immediate ban on initial coin offerings (ICOs), and pronounced them illegal and a threat to financial stability.
Individuals and organizations that have finalized ICO fundraisings will have to return all funds.
Following the ban, the value of all publicly traded cryptocurrencies declined by nearly 25% from an all-time high. But the market was once again on the rise on Wednesday, climbing 17% from a low of $134bn observed Tuesday, reports CoinDesk.
Concern over ICO fraud
"I think the drop over the past few days is due in part to China's concerns over ICO fraud, but may also be the result of some recent news about thefts from individual cryptocurrency accounts and the hacking of actual blockchains," says Steve Nadel, hedge fund attorney and partner at Seward & Kissel LLP in New York. "So clearly, the theme of concern here is criminality."
"The result of these events will, in my opinion, result in the short-term, greater self-policing and a devotion of significant assets by industry players to eliminate these criminal issues. In the long term, after relevant studies are done, we should expect m...................... To view our full article Click here
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