Vice-chairman of the PBoC: the decision to ban ICO and closing of Bitcoin Exchanges was correct

Yicai Global reports that Pan Gongsheng, Vice Chairman of the People's Bank of China (PBoC), speaking at the annual event dedicated to financial literature organized by China Business News and JPMorgan Chase, said that the regulator made the right decisions about restrictions on the country's Cryptocurrency market and the prohibition of ICO.

"If we didn't shut bitcoin exchanges and crack down on initial coin offerings (ICOs) a few months ago, and if more than 80 percent of the world's bitcoin transactions and financing activities were still taking place China, which was the case back in January, what would it be like today?" said Pan Gongsheng.

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Vice-president PBoC considers Bitcoin-mania the latest embodiment of financial speculation, and all speculative madness, including how it was with tulip-mania and the dot-com bubble, created problems for financial markets.

No one can predict how long a speculative bubble will last or when it will reach a peak, the professor wrote in the last paragraph of his book. Sometimes the market can remain irrational longer than one can stay solvent, British economist John Maynard Keynes once said. 

"So there's only one thing we can do - watch it from the bank of a river. One day you'll see bitcoin's dead body float away in front of you," he said, citing a line from the book.

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The Beijing internet finance risk rectification authorities issued Virtual Currency Exchange Cleanup and Regulation Requirements on Sept. 15, ordering all trading platforms to immediately stop accepting new user registrations and publicly disclose their deadlines for discontinuing virtual currency transaction services by midnight. All major Chinese bitcoin exchanges have complied with the policy.