On September 4th, the People's Bank of China spearheaded a sharp notice regarding the cryptocurrency mania that has been brewing in the country. The statement, jointly issued by seven government agencies, calls for a "comprehensive ban" on ICOs and restrictions on all cryptocurrency trading activities. The news sent the market into a panic attack. Fear, doubts, and rumors spread through forums and chats like a plague.
As the situation continues to develop, we put together a research report that examines the event from a macro perspective. In this report first we laid out everything we know and do not know at this point. We shed light on the background of by comparing all regulatory actions in the past, the development of cryptocurrency scene throughout the year, and the broader economic environment in China.
Furthermore, we offer our interpretation of this event, and discuss our hypothesis of the short-term and long-term implications of the ban, as well as other regulators' stances on cryptocurrencies.
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