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The head of Beijing’s Municipal Bureau of Finance: “Security Token Offerings are Illegal in Beijing”

Cryptocurrency Regulation

A report by Caijing, an independent media outlet based in Beijing, has revealed that the DG (director general) of Beijing Municipal Bureau of Finance has cautioned that STOs (Security Token Offering) fundraising is an illegal activity in Beijing.

In fact, at the “2018 Global Wealth Management Forum” which took place on the 1st of December 2018, Xuewen Huo, who is the head of Beijing’s Municipal Bureau of Finance stated, “I will make a risk warning to those who are propagating in Beijing and want to issue [security token offerings]. Don’t do it in Beijing.” Huo further noted that the STOs are yet to have any authority.

In the same light, Huo had a lot to say regarding the need for wealth management expansion and quality and why it is necessary to manage the fortune of the ordinary man and the very rich folks. However, he went on to warn companies against seeking to make a profit in the city without having the required licenses to do so, as well as the importance of “investor education.”

Meanwhile, the PBoC (People’s Bank of China), the central bank of the Nation have raised alarm against conjecture, the manipulation of the market, and many more anomalies in relation to blockchain investments and financing.

The Chinese capital is seen as the financial center that houses the head office of several regulators and financial establishments as well as the corresponding $20 trillion in assets under management.

Beijing’s supervisory stance is likely to set a model for the country due to the closeness of the supervisory body to the professional investors within the country.

Back in September 2017, China banned a lot of ICOs. Furthermore, in the month of August 2018, China increased the pressure on several crypto related activities by blocking about 124 overseas crypto exchanges from trading within its region.

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