Chinese Central bank denounces STOs “You will be kicked out if you do it.”

Bitcoin News | Crypto News | ICO News

China’s Central Bank deputy governor has denounced STOs terming them as illegal activities in China following the slow progress from Initial Coin Offerings to the newer ICO called Security Token Offerings. STOs represent an ICO backed by tangibles such as assets, or profit or revenue of a company. Ultimately more lucrative than an ICO. However, both are still currently banned in China. 

Pan Gongsheng, the deputy governor of the People’s Bank of China said that financing activities through STOs and ICOs were illegal, even though the activities continue to be rampant in the mainland following a nationwide crackdown of cryptocurrency markets from 2017. 

Companies have been looking at moving to STOs following the lack of success with ICOs recently, companies in China may think that this loophole allows them to promote their business as ICOs are currently illegal in China. However, the governor announced, “The STO business that has surfaced recently is still essentially an illegal financial activity in China, Virtual money has become an accomplice to all kinds of illegal and criminal activities.”

FREE CRYPTO COIN JUNKY HANDBOOK - 147 page guide covering Crypto Fundamentals, Beginners/Advanced Crypto Trading Strategies, Crypto Mining Techniques, ICO Investment strategies, and so much more.

CRYPTO TRADING STRATEGY GUIDES - Whether You're Day Trading, Swing Trading, Or Just Investing...Our Extensive Guides Will Get You To Where You Want To Be.

Gongsheng admits that most ICO and STO fundraising projects in China are linked to possible illegal fundraisings and pyramid schemes, among other financial fraud.

China’s crackdown on ICOs in 2017 came after 80% of all ICO financing was taking place in China. The clamp-down in a bid to curb crime within the industry appears to have had a positive effect on the industry. China took steps to stop ICO operations and participation within the country due to the negative effect the potentially illegal activities could have on the countries overall financial industry.

Huo Xuewen, Chief of financial watchdog Beijing Bureau of Financial Work, issued a stern warning to anyone trying to operate an STO in China “I want to warn those who are promoting STO fundraising in Beijing. Don’t do it in Beijing. You will be kicked out if you do it.”

China remains one of the massive players in the cryptocurrency space and is taking steps to prevent companies from taking advantage of citizens and damaging the financial industry in the country.

Author: bonnie weru

Crypto Lover and Messi Fan

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Chinese Central bank denounces STOs “You will be kicked out if you do it.”

Bitcoin News | Crypto News | ICO News

China’s Central Bank deputy governor has denounced STOs terming them as illegal activities in China following the slow progress from Initial Coin Offerings to the newer ICO called Security Token Offerings. STOs represent an ICO backed by tangibles such as assets, or profit or revenue of a company. Ultimately more lucrative than an ICO. However, both are still currently banned in China. 

Pan Gongsheng, the deputy governor of the People’s Bank of China said that financing activities through STOs and ICOs were illegal, even though the activities continue to be rampant in the mainland following a nationwide crackdown of cryptocurrency markets from 2017. 

Companies have been looking at moving to STOs following the lack of success with ICOs recently, companies in China may think that this loophole allows them to promote their business as ICOs are currently illegal in China. However, the governor announced, “The STO business that has surfaced recently is still essentially an illegal financial activity in China, Virtual money has become an accomplice to all kinds of illegal and criminal activities.”

FREE CRYPTO COIN JUNKY HANDBOOK - 147 page guide covering Crypto Fundamentals, Beginners/Advanced Crypto Trading Strategies, Crypto Mining Techniques, ICO Investment strategies, and so much more.

CRYPTO TRADING STRATEGY GUIDES - Whether You're Day Trading, Swing Trading, Or Just Investing...Our Extensive Guides Will Get You To Where You Want To Be.

Gongsheng admits that most ICO and STO fundraising projects in China are linked to possible illegal fundraisings and pyramid schemes, among other financial fraud.

China’s crackdown on ICOs in 2017 came after 80% of all ICO financing was taking place in China. The clamp-down in a bid to curb crime within the industry appears to have had a positive effect on the industry. China took steps to stop ICO operations and participation within the country due to the negative effect the potentially illegal activities could have on the countries overall financial industry.

Huo Xuewen, Chief of financial watchdog Beijing Bureau of Financial Work, issued a stern warning to anyone trying to operate an STO in China “I want to warn those who are promoting STO fundraising in Beijing. Don’t do it in Beijing. You will be kicked out if you do it.”

China remains one of the massive players in the cryptocurrency space and is taking steps to prevent companies from taking advantage of citizens and damaging the financial industry in the country.

Author: bonnie weru

Crypto Lover and Messi Fan

Leave a Comment

[js-disqus]

Latest Crypto News

Goals set by Justin Sun for Tron(trx)in 2019

On the 31st Of May 2018, Tron achieved independence from Ethereum and Launched its own Mainnet with the Intention of being a fully functional Public Blockchain that supports Creation and development of decentralized Apps (dApps)

Read More »

Crypto Regulation Commences in South Africa

The South African government today issued a statement regarding the steps it is taking on cryptocurrency trading by setting up a working group dedicated to regulating blockchain and crypto. Background Before we get into that,

Read More »

Facebook Hiring: 5 Cryptocurrency Positions Open

Something is definitely brewing in Facebook’s newly formed department. Early in May, there was a rumor that Facebook was interested in opening a cryptocurrency department within its headquarters. The advertised positions are: Two Software Engineers

Read More »

Crypto StartUps are Failing

Cryptocurrency start-ups have had a rough year with a huge section of them laying off loads of their workers with the  Bitcoin price crash. Bitcoin has lost around $280 billion of its value this year

Read More »

CNBC Reporting the surge of bitcoin to $100 back in 2013!!

https://www.youtube.com/watch?v=O3XvCbh8pQU reddit Buffer Facebook Twitter FREE CRYPTO COIN JUNKY HANDBOOK – 147 page guide covering Crypto Fundamentals, Beginners/Advanced Crypto Trading Strategies, Crypto Mining Techniques, ICO Investment strategies, and so much more. CRYPTO TRADING STRATEGY GUIDES

Read More »

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