I hate scammers, and there have been a number of ICO scams that have stolen a lot of money.  While I'm not sure that the Chinese government is putting an end to ICOs out of the goodness of their hearts to protect their citizens from scams, I think that some regulation in this area is good.  It will make scammers think twice about the value of starting an ICO just to rip people off. In the end, if someone in China really wants to join an ICO, they will find a way around the restrictions.