The People's Bank of China has blocked all ICOs under Bitcoin, due to the large number of scams, which has caused Bitcoin to be punished, with a loss of almost $ 1000 in value in just 72 hours.

Cryptocurrencies have brought us the blockchain, a very interesting platform that is based on smart contracts and that has the potential to support other projects. This process has been called ICO or initial offer of crypto assets, which is basically the generation of a cryptocurrency, for example in the Ethereum or Bitcoin blockchain and which is used to finance specific projects. The SEC has already started to get tough on this system in the United States, in order to avoid fraud and China has been the last to get tough on ICOs.

China has taken a very tough stance towards ICOs and that is that according to the Caixin website, China would have totally banned any type of initial crypto-asset offering, which is used by projects based on the blockchain to obtain financing. Researchers from the central bank of the Asian giant have analyzed the white papers of several ICOs and have concluded that '90% of ICO projects are suspected of raising funds illegally and of probably committing fraud'. They have also highlighted that most of the ICO projects that were launched in 2015 have ended up being a failure in terms of development.

The Caixin medium has also commented that according to the People's Bank of China, it intends to penalize the ICOs that have already been carried out for not complying with the legislation, in addition, forcing them to make a refund of the funds obtained in these capitalizations, which represents a problem for the ecosystem, which has generated a tsunami that has caused the value of all cryptocurrencies to fall. This measure has been prepared together with seven financial and banking entities, who have given the go-ahead.

"The tokens or virtual currencies used in this type of financing are not issued by the monetary authorities, they do not have legal monetary properties such as indemnity or coercion, they do not have legal status equivalent to money, and they cannot and should not circulate as currency of use of the market ”, according to a statement from the Chinese authorities.

After making this information known, we have seen how Bitcoin has gone from almost $ 5000 to just $ 4000, suffering a very important drop in value. This does not mean that this is going to end badly, it seems rather the opposite, it is a fall for what it means, but it is likely that in the coming days and weeks the market will recover. Ethereum, Zcash, Dash or Litecoin fall along with Bitcoin, something normal since if Bitcoin falls, the value of all currencies falls, since BTC is the reference currency of many exchange houses and usually drag the value of all assets.