What nobody mentioned, or at least I did not find it yet, is that cryptocurrencies or new platforms on Ethereum or other smart contract Blockchains are not banned at all. As I understand everyone is still welcome to create new Tokens on e.g. the Ethereum Blockchain, even in China. Founding new companies based on Blockchain technology.
However, the ICO (Initial Coin Offering) itself is banned which has it's soley purpose in finding investors and crowdfund their project. Also, trading this tokens on exchanges got banned.
An ICO might be compared to an IPO but IPOs unlike ICOs will only be listed on exchanges if a legitimate company is behind it and investors and banks stand behind that company to conduct an IPO. ICOs on other hand only need a token and good marketing. All the SCAM coins having a webpage and whitepaper only without any fundamentals behind it. I am totally for banning such SCAMS by setting some basic rules. Rules or guidelines which the SEC already published some time ago.
We should not forget criminal ICOs as well. Very often I fell over fake ICOs which looked very similar or named similar to some ICO that received high recognition because of it's fundamentals. Many people fall into such traps.
My opinion to what will happen. First whales will collect the black Friday discounts on coins while the dump money leaves and takes the losses. I guess china is not interested in crashing this markets since too much money is involved. It will set basic rules which will be required when someone wants to conduct and ICO to crowdfund a project. After that business goes as usual and less SCAM coins enter the market. Digital exchanges will be regulated as well by forbidding them to list coins which do not fulfill the rules.
Hoping on your opinion on that and excuse my shitty English.