Chinese Blockchain Association Will Regulate ICOs

Chinese Blockchain Association Will Regulate ICOs

Chinese blockchain companies have released a protocol addressing financial risks related to initial coin offerings (ICOs) in China. The joint proto

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Chinese blockchain companies have released a protocol addressing financial risks related to initial coin offerings (ICOs) in China.

The joint protocol, “Guiyang Blockchain ICO Consensus“, was proposed by six industy players. According to cryptocoinnews.com and the China Money Network (chinamoneynetwork.com), the protocol was proposed by Guizhou Blockchain Industry Technology Innovation Alliance, Zhongguancun Blockchain Industry Alliance, Blockchain Finance Association, Guiyang Blockchain Innovation Research Institute and two other unnamed entities.

At the time being, there are 43 platforms in China that provide ICOs. Most of them are reportedly located in Guangdong, Shanghai and Beijing that represent 60 percent of the total number of platforms, as cryptocoinnews.com wrote in their report.

SEC will regulate ICOs?

The release of the Chinese ICO protocol comes shortly after the US Securities and Exchange Commission (SEC) announced in a report that DAO tokens should be regulated.

In 2016, the ICOs were reportedly seeing a growing interest. The DAO was known as the biggest ICO, as cryptocoinnews.com wrote. Then, it was hacked and lost $59 million.

The popular DAO security hack was the first in a number of hacks, according to reports.

So, it became clear that ICOs carry investment and security risks. Yet, it didn`t stop investors wishing to put their money in them.

ICO Crowdfunding Goes Up

As a research by Autonomous announced, over $1.2 billion in Cryptocurrency was raised through Initial Coin Offerings (“ICOs”) in the first half of 2017. This is measured to be more than venture capital investment in blockchain and Bitcoin companies.

IMAGE: Autonomous Next (next.autonomous.com)

About $600 million was raised in last 30 days alone, as cryptocoinnews.com explained.

The report noted that the ICO market has the attributes of a bubble, but it is still marking a shift in the digital world.

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