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Bitcoin and altcoins have dropped up to 25% in hours
after rumors the Chinese government is banning cryptocurrency exchanges once again. Comments surfacing on social media link to local media outlet Caixin, which suggests regulators are seeking a shutdown of exchanges as part of the ICO ban imposed earlier this week. Markets have reacted sharply, Bitcoin losing over 8% to head towards $4200 from $4670, while Litecoin fell 15% and others followed.
NEO, the Chinese ICO project especially affected by regulatory upheaval, lost 25%. While little evidence has appeared to support a full ban on trading, even under this eventuality, Chinese authorities are repeating behavior already seen once in 2017. January’s several-month exchange ban lasted until May, when new guidelines came into effect allowing trading to resume. As such, the knee-jerk reaction seen Friday is already being labeled ‘FUD’ by some commentators. Prices had recovered through this week after the impact of China’s ICO ban waned in record time. From lows of $4008 Monday, Bitcoin regained all its lost ground, only to lose half of it once again as of press time.
Switzerland’s non-profit Crypto Valley Association (CVA) is developing an ‘ICO Code
of Conduct’ to help with future regulatory hurdles. ICOs, which received a complete ban this week from China as well as warnings from Korea, continue to thrive in jurisdictions where regulations are yet to catch up with the market. In creating its Code, the CVA hopes to galvanize the local industry with guidelines “expected to bring clarity and confidence” to the asset class. “The rapid development of token launches has raised concerns around stability and security, and as a leader in this field, it’s our responsibility to support the industry,” chairman Oliver Bussmann commented in
a press release Thursday.
“The widespread adoption of this framework, combined with careful supportive regulation would bring stability to an exciting but uncertain trend in Blockchain.”
Switzerland has made a name for itself as a progressive environment for Blockchain-based business. Authorities in various Kantons of the country have even taken steps to integrating cryptocurrency payments, and most recently legacy banking operators have begun offering customers exposure to Bitcoin and Ethereum. With ICOs now the focal point of the consumer-oriented face of Blockchain, the CVA sees a chance to present the $1.6 bln industry in a beneficial light.
Bussmann continued:
“We believe that token sales represent an exciting, sound and innovative approach to raising investment capital. Therefore, we believe Switzerland should support this trend by developing clear, comprehensible, yet flexible regulation that clarifies the legal status of ICOs and the tokens generated.”
A statement added the CVA had begun drafting the Code but did not give a specific completion date or roadmap.
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