This is Why Bitcoin’s Price Collapsed

Cryptocurrency Bitcoin saw its price drop recently and it’s because of China.

Chinese regulatory agencies released a joint statement on Monday that said initial coin offerings (ICOs), a cryptocurrency-based fundraising method, are illegal in the country.

Though the 15 largest cryptocurrencies by market cap were all down more than 5% Sunday, according to data from Coinmarketcap.com., the news from China could actually be a good thing.

Sebastian Quinn-Watson of Blockchain Global, a bitcoin exchange operator, told Business Insider in an email Monday morning that the Chinese announcement was an “absolute win.” This is because it weed out illegitimate ICOs.

“The changes in regulation will take a lot of the bad actors out quickly,” said Quinn-Watson. “Excellent result for every founder who has a good product, a sensible and well structure token sale process, and an international outlook.”.