The news has become more and more clear that China will not tolerate exchanges.
This is alarming to the bitcoin community because we have long awaited for official government push back. Really it was just a matter of time.
It would have been better to have a smaller country that is less involved than China push back initially.
The fact that China has banned ICO does not mean that they will cover and bitcoin, on the contrary they want to make it an alternative to the yuan, just control over it will be tougher.