China bans raising funds through cyrptocurrencies

China has banned individuals and organisations from raising funds through initial coin offerings (ICO), or launches of digital currencies announced on 4th of Sept 2017. It allows raising large sums quickly by creating and selling digital “tokens” with little or no regulatory oversight. As per the People’s Bank of China Individuals and organisations that have completed ICO fund-raisings should make arrangements to return funds. After the announcement the prices of bitcoin and ethereum, two of the largest cryptocurrencies fall sharply. According to cryptocurrency analysis website Cryptocompare in total, $2.32 billion has been raised through ICOs, with $2.16 billion of that being raised since the start of 2017.