ICO ban seen helping improve regulation

China's recent ban on initial coin offerings is not expected to deter the commercial usage of blockchain technology, analysts said. Rather, they believe the ban to be a necessary step for better regulation of the technology.

Sheng Songcheng, a senior official of the central bank, said during an interview with China Business Network that blockchain is a promising technology and such scrutiny will only push the industry toward a healthier path.

"To eliminate the market frenzy once and for all so that everyone can start again by following the new rule is a very meaningful strategy," Sheng said. "Cryptocurrency is the most well-known practice of blockchain. It is impossible to stop it, but it is time for efficient scrutinizing."