The Wall Street Journal | By: Chao Deng | September 04, 2017:
Prices for bitcoin and ethereum tumble after ban announced.
Chinese authorities banned a type of fundraising using cryptocurrencies like bitcoin, dealing a blow to startups and other businesses that seized on the relatively new method of raising capital.
China’s central bank, cyberspace administration and banking, securities and other regulators Monday declared what are known as initial coin offerings illegal and ordered fundraising activities to “cease immediately.”
The ban wasn’t a surprise for the industry, coming after a financial technology industry association last month called for more stringent regulation of initial coin offerings, or ICOs . In recent days, authorities ordered inspections of ICO platforms, according to a document reviewed by The Wall Street Journal, and a handful of those platforms said they would stop providing services for the offerings.
Even so, prices for bitcoin and ethereum, two digital currencies that Chinese investors have pumped into ICOs, tumbled late Monday after the ban, falling as much as 5% and 11%, respectively.
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