The global success of bitcoin and other virtual currencies is due to the infiltration of financial investors and large investments into a new market. However, the Chinese government started restricting the transaction by bitcoin. The central bank of the country has banned all ICO operations. The Chinese financial authorities not only stop all ICO transactions but also refund previously collected amounts and prohibit transfers. account transfer by bitcoin. China expressed concern that many ICO financial fraud. The ICO is risky for money laundering or terrorist financing because of the anonymity of transactions and the ease of transferring large amounts of money from one place to another in the short term. However, China is also quite cautious against This is because the country is one of the fastest growing markets in the world. At the same time, the establishment of legal regulations on virtual currency relations hasn't been taken into account by the government. Virtual currency is considered virtual goods and exchange of encryption must be registered with the National Telecommunications Bureau, which is also considered a step forward in China.