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."