CHINA | The 19th Communist Party Election Elections will be held in China on October 18th. New elections mean a change in leadership for most governments. And this is happening in China with high probability. The elections are not democratic but are internal elections to the headquarters of the government within the Communist Party. What does this mean for the ICO ban?
Restructuring the government in China
This election will take place this year in an “odd year” (the last was in 2012), which means that there will likely be significant changes in the government of China. Above all, the election will include the resignation of five of the seven current members of the Political Bureau, the main government of the Chinese government.
While Xi Jinping will remain as Secretary General, the government’s entire make-up can dramatically change. These changes could also reflect a change in monetary policy. In addition, the same change was made in 2011 when the 17th Convention tried to ban VIEs (Variable Interest Entities, allowing Chinese companies to trade in US markets). The ban was quickly overthrown after the end of the 18th election.
The end of the ICO ban?
There is no guarantee that a new government will reverse the ICO ban. Consequently, this ban has plagued the crypto markets in recent weeks. According to Forbes, there could still be political motives for the ban, which is made after the elections again.
While it is true that a decentralized currency could create chaos in the highly centralized Chinese economic form, the current size of the bitcoin economy is so minuscule that any “threat” is not to be taken seriously.
If this is the case, the prohibition of the election could be futile and abolished. However, it is possible that companies and exchanges have already fled to other safer environments. As a result, the damage can be too great to undo.
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Categories: Crypto Currency