The Russian-Chinese Cryptocurrency Alliance has been delayed

The Russian-Chinese Cryptocurrency Alliance has been delayed. For several months Russia and China have been announcing their partnership in regards to the cryptocurrency market. However, just when that partnership was supposed to be launched, the news came that left many people wondering what will be happening with this project in the future. The biggest cryptocurrency platform in Russia, KICKICO, has announced that the launch of the alliance between Russian and Chinese side has been delayed and that it is not clear when the launch might be happening.

The main reason to cancel the launch was the fact that Chinese authorities have banned Initial Coin Offerings in China. Companies that collected funds through ICOs have been ordered to return the funds in order to protect the interests of the investors. Chinese authorities have stated that ICOs are unregulated issue and as such they are not allowed to operate on the Chinese territory. They also stated that these ICOs have been used for money laundering schemes and for financing terrorism which became one of the reasons why China banned ICOs.

Besides that, 60 big companies that collected funds through ICOs will be visited by the country authorities that will be inspecting the companies’ business and their ICO campaigns. Because all of that, KICKICO decided that it would be the best not to go forward with the alliance between China and Russia, at least for now.

KICKICO did not announce when they might be launching their alliance but it is believed that both sides are waiting to see the outcome of the latest regulations about cryptocurrencies in China. Despite that, CyberTrust, one of the KICKICO’s partners, has held a press conference where they introduced CyberEX and exchange platform that will be focused on the Russian market. Chinese platforms and KICKICO joined forces in order to create a blockchain platform that would enable start-ups in Russia and China to have much easier time with blockchain technology.

Considering that blockchain technology is a huge part of the Initial Coin Offerings service and considering that ICOs have been banned in China, it does not look like that start-ups will be able to enjoy the products of this partnership, at least not for the upcoming period.

However, China is not the first country to restrict ICOs as Russia also tried to impose some regulations that would provide more control over the entire system.

Cryptocurrencies have reached the heights like never before and with every day there are more and more experts saying that cryptocurrencies are here to stay. Because of that, Russian and Chinese sides decided to incorporate this fact into their business and they turned to cryptocurrencies. However, that will have to wait until the Chinese government decided what regulations would be imposed on ICOs and cryptocurrencies in general. Both sides are convinced that China will find the right way to regulate this market because if they do not, they will miss out one of the biggest things in the financial market that happened in the last ten years.

Written by Vedran Ostojic

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