Its all about Communist party control. China has opened up a lot but the government is still run by the Communist party with it's ideals of control. Just like banning Google or Facebook, the Communist party sees crypto as a threat to their rule so they are trying to block it. Yes, there are a lot of bad ICOs out there but the market will work it out as people become more educated. I feel that the Chinese government is seizing the opportunity now with all the ICO issues to take a hard line on Bitcoin and other established cryptos just to build a firewall around the Yuan. The Yuan is already a government pegged currency just like the Rubbel was during the Soviet era. The Yuan is much more susceptible to being undermined by Bitcoin than the US dollar which is recognized and accepted all over the world and trades freely against other currencies. Albeit the fed controls the money supply and interest rates so they do exert a lot of control but they can't just peg a price like the Communist party. I don't see China letting up on this anytime soon. Perhaps they are secretly working on their own Communist backed crypto currency and they are stalling for time to prepare. Just a thought!