Why do you think that happened in China?
Communist party, total control, party members or relatives that got scammed, idiots in charge of laws...or simply put... because it is China.
Respecting the laws in China is impossible and that's why nobody does. That's why nobody cares abut them 'banning" something for the x time last years.
Great decision from China, although bitcoin took a hit in the last couple of days, seems like the effect wasn't permanent and will help regulate ICO.
They don't want to regulate it.They just want to stop them.
And nobody with a brain will invest in an ICO accepted enforced and controlled by the government.
Capitalist countries and communist countries have ideological differences but when it comes to protect themselves and their interest they are basically the same, China is banning icos if at some point they ban cryptocurrencies in general that would be awfully similar to what the US did when they banned gold ownership.