As the China Government regulations take hold in the cryptocurrency World, largely fueled by the outrage of lack of consumer protection measures which has led to criminals trying to take advantage, from fraudulent investment schemes to pyramid schemes and numerous other financial crimes. Such crimes have been largely fueled by the use of ICO’s (Initial coin offering) as opposed to established cryptocurrencies due to ICO’s being unregulated, enabling startups and companies to be able to raise funds in a very quick manner. The Chinese Government is trying to balance regulations which it is set to announce in September whilst also not hurting blockchain/fintech growth or development, something it has strongly invested in.
This has led to stakeholders in the cryptocurrency World turn to NEO, which is seen as the Chinese based Etheruem. NEO should be exempt from Chinese Government regulations since it originated in China and already follows the rules as it does not fall under the definition of being an ICO, so thus ICO’s based on NEO maybe allowed to still operate within the country. This in turn will boost NEO and the broadly the cryptocurrencies market within China as cryptocurrency stakeholders will finally gain the much needed clarity they desire in terms of their legal status within the country.
Thus in turn benefiting the NEO further, which is possibly China’s first public blockchain based cryptocurrency, especially now as it appears to have the green light from the Government to stay well established within the country. Several companies and organizations within China have already decided to switch to NEO such as Qlink which already has millions of users is a wireless telecommunication service has decided to adapt NEO. THE KEY is a very significant project that could revolutionize the medical industry by enabling individuals to have digital identities when they register themselves at medical institutes, it already has Government backing and approval and has decided to use NEO as their platform. Several other companies that were going to use traditional ICO’s have modified their financial infrastructure and have decided to use NEO instead, such as Loopring partnership which facilitates in digital currency transfers.
This news is extremely significant as NEO has an advantage against any other competing currency due to it being the first established digital currency in China that originated from China itself. With one of the biggest cryptocurrency markets in the World adopting it and bringing it towards the forefront of ICO’s, it could unlock new potential by having a state that backs the coin through less stringent regulations. Thus propelling the coin not only in price but also status. As any organization that wishes to deal with ICO’s will have to do it by using NEO, giving added value and use to the currency.
The list above is just the tip of the ice-berg with companies such as Onchain, Microsoft, PeerAtlas, ProjectICO, DeepBrain, Alphacat, NEX, Elastos partnership, Fosun group and many more announcing the use of NEO within their firm by being stakeholders, it gives NEO further credibility and backing. NEO unlike other cryptocurrencies has a dedicated council called the “NEO council” which helps expand the use of NEO in the global economy, something that has been apparent for a long time as it has made the NEO one of the most successful digital currencies out there in the cryptocurrency markets. With NEO going from being worth half a cent in September last year to now being worth more than $40. Get ready for a NEO boom if the Chinese Government gives the green light early this week.