The Chinese cryptocurrency landscape has faced a seismic shift following the People’s Bank of China (PBOC)‘s decision to ban Initial Coin Offerings (ICOs), labeling them as “illegal fundraising.” This move has sent shockwaves through the crypto market, forcing exchanges and blockchain companies to make immediate adjustments to comply with evolving regulations.
While PBOC suggests that the ban may be temporary as the government fine-tunes its approach to blockchain innovation, companies are left with no choice but to adapt—or face extinction.
Chinese Crypto Firms Scramble to Comply
Exchanges Take Precautionary Measures
Major Chinese crypto exchanges are already enacting changes to protect themselves from financial and legal repercussions:
- BTCC, one of China’s largest exchanges, has suspended all ICO-related services, including deposits and withdrawals of ICO tokens.
- Huobi, another leading exchange, has increased its transaction fees to 0.2% to mitigate risks from market volatility.
- Yunbi has taken more drastic steps by permanently delisting all ICO tokens from its platform.
- DEx.top, launched on Sept. 5, has preemptively declared that it is not involved in any ICO-related projects, distancing itself from regulatory scrutiny.
Rebranding & Refunds: Damage Control Tactics
Some companies are opting for name changes to avoid direct associations with ICOs:
- ICO Token has rebranded itself as Aike (爱科) Coin, signaling a shift in its business model.
- ICOAGE, once a major player in facilitating ICO investments, has halted all ICO services and is offering investors the opportunity to withdraw their funds.
Other firms are taking a more investor-friendly approach:
- Binance and Bizhongchou have begun returning Bitcoin and Ethereum to users who had invested in ICO projects.
- ICOINFO has followed suit, issuing refunds in Bitcoin, Ethereum, and other cryptocurrencies to investors.
- Bytom, a blockchain project, has announced a refund program for all BTM token holders.
Full Suspension of ICO-Related Activities
Several companies have chosen to completely withdraw from the ICO space:
- Jubi has refunded all ICO tokens to their original owners and ceased further dealings.
- Bter has stopped all trading services involving ICO tokens, including popular assets like Qtum and Bytom.
- ETCWin has suspended both deposit and withdrawal services, taking a cautious stance on compliance.
- Da Honghuo, a major cryptocurrency exchange, has also officially halted all ICO token trading on its platform.
What’s Next for China’s Crypto Industry?
Despite the current ban, China’s long-term interest in blockchain technology remains strong. The government has hinted at future regulations that may provide a more structured framework for crypto-related activities. However, for now, companies are left navigating an uncertain landscape.
With major players either exiting the ICO space or finding alternative ways to operate, the question remains: Will China relax its stance, or is this the beginning of a more restrictive crypto environment? The answer will shape the future of digital assets in one of the world’s largest crypto markets.