China’s planned ICO regulation
The Chinese government’s regulations on ICOs stem from public outrage over the large number of pyramid schemes in the country. China is set to decide on the proposed ICO regulatory measures this September following public consultations.
The regulations will focus on various fundraising activities in China, including Initial Coin Offerings. If these proposed regulations are made into law, they will likely help boost NEO since the regulated ICO market will give investors confidence.
That proposition was stipulated in a Reddit article by bentylerlive.
NEO likely be bullish?
Since NEO originated in China and already abides by the proposed rules, NEO would be associated with quality and functionality. China’s first public Blockchain could become China’s premier digital platform.
This sentiment was echoed by one commenter who opined that regulations are inevitable and will cause a dip across all Blockchain-based assets. The end result, he believes, will be a stronger and more sustainable market. Another Reddit user said the move will surely solidify investors’ trust and ultimately lead to better organized and more transparent projects.
The statement posted on Reddit reads in part:
“First off, to all the people who think China will ban ICO's: That's simply not going to happen. It would make a lot of very rich people angry in China. Let me explain.Having specific rules in place gives the market a sense of permanency and legitimacy. It reassures many investors in China that the Chinese government is watching very closely for cases of fraud, and will react in order to[sic] protect the public. That's bullish for NEO. Incoming regulations were inevitable. Even if they weren't, we still don't want a series of low quality ICO's clogging up the NEO platform. NEO should be associated with quality and functionality, first and foremost. Like all of you, I look forward to NEO becoming the premier digital platform led by the fine folks in China, and now we are one step closer to that goal.”
It is apparent that soon ICOs will need more than just marketing blitz--they’ll need to be compliant.