It maybe a fake news, I never heard that China will legalize ico, the government holds a clear attitude toward ico, especially the main task is to ensure the finance security, I think there is no way to legalize ico for two or three years in China
Actually the new governor of the China Central Bank make a positive statement about crypto-currencies immediately after he got his seat. So this could be very real news and China will aim into taxes from all cryptos.
His predecessor was well known to be anti-crypto.