Recent news of the imminent closer of many Chinese exchanges is the direct result of them dealing in ICOs, I've been shocked for the longest time other countries have done so, allowing ICO's to fly under regulators radar, however its only just a matter of time.
ICOs are indeed full of scams and they are freely roaming the ICO streets without any law that strictly prevents them from multiplying. China is reacting to this properly as regards the ICO ban. But there will still be another law that would only put regulation in place of the ban because ICO is still widely used by good projects.