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.
I am sure that if this news is real, then it would bring good changes in the market. China has always been considered as one of the "big markets" that any business would want to penetrate or get good graces from; it's because China's economy is so big that once it picks up one market, it gives it the boost to boom in the years to come. Since there are so many news of China doing drastic changes on how they accept cryptocurrencies in general, then it would surely give a breath of fresh air, if for once, they would release something stating their support of the cryptocurrency market. I just hope it's real news.