Bitcoin price drops $200 on China’s decision to ban ICO

Almaty. September 5. Silkroadnews – Bitcoin price drops $200 on China’s decision to ban ICO, CNBC portal reported.
“The price of bitcoin fell sharply after Chinese regulators announced a ban on organizations from raising funds using initial coin offerings (ICOs)”, report reads.
With this, it is explained, the ICO allows newcomers among investors to attract investments by selling crypto currency similar to bitcoins for cash. The People’s Bank of China considered that this practice, which became popular all over the world as well as in China, constitutes illegal fundraising.
As reported, despite the drop in bitcoin prices, experts believe that this fall will be short-lived.
According to the publication, although the ban on ICO does not directly affect bitcoin, the news has created negative sentiments in the market, which affect the prices of several virtual currencies. So, the price bitcoin fell from $4,484 to $4,350 for bitcoin.
This is not the first time when China tries to bring crypto-currencies under tight control. In January and February, the central bank of the PRC warned several digital currency exchanges that they would be closed if they violate the rules for combating money laundering.