According to Yang Dong, vice president of the Law School of the People’s University of China and director of the Financial Technology Center, the exchange of cryptoactives and the making of Initial Currency Offers (ICO) will not be banned in the country, but strictly regulated .
At the Blockchain Summit in Southeast Asia, the academic read a speech entitled “Reflections on the regulation of cryptocurrencies”, in which he assured that the State will not maintain for a long time the prohibition that falls on the currency exchanges of cryptocurrencies in the country since the month of September.
In his words, the actions taken the previous year were necessary to protect investors from the amount of bad projects that abounded in the country, but in the course of 2018 will be published a new regulatory framework in which exchanges can be made following a series of standards.
He also added that both the exchange houses that remain in the country and those that operate from abroad will be strictly regulated , arguing that bad projects will not be safe just by changing the location of their registry.
Regarding the Initial Currency Offers ( ICO ), Yang said that in the current scenario it is very difficult to differentiate good from bad projects, but that after the ban the authorities can focus more clearly on the legal tools that help generate a healthier ecosystem.
It is important to remember that during the month of September the Chinese government banned the making of Initial Currency Offers, and then the exchange of digital currencies per yuan, impacting the price of the cryptocurrencies of the market. At that time, this nation handled the largest volume of cryptocurrency transactions in the world, a leadership that was later shared between Japan and South Korea.
In spite of everything, since then China has been looking for the best regulation for these financial instruments, something that already seems to be coming.