According to Chinese news media outlet Caijing, Beijing government decided to do away with any types of token sales, namely they banned security token offering (STO) in “Northern Capital”.
The statement was announced at the ‘2018 Global Wealth Management Forum’ by Huo Xuewen, the chief of Beijing’s Municipal Bureau of Finance:
“Recently, ICOs have been abandoned, and a new concept called STO has been advertised. With today’s platform, I will make a risk warning to those who are propagating in Beijing and want to issue STO. Don’t do it in Beijing. If you do it in Beijing, you will be taken away from illegal financial activities. When we have the authority to approve you to do an STO, we will say.”
The STO is a friendly-regulated kind of an initial coin offering (ICO). The STOs are enable to possess securities or stakes in business, as well as get the profits from it. The tokens represent tangible assets.
We remind you that China banned all foreign ICOs inside the country back in April this year. The SEC also decided to introduce fines for celebrities who promote scam ICOs.
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