PBOC Deputy Governor Calls STOs ‘Illegal Financial Activity’

PBOC Deputy Governor Calls STOs ‘Illegal Financial Activity’
фото показано с : news.bitcoin.com

2018-12-11 06:50

Local media has reported that the People’s Bank of China (PBOC) has banned security token offerings (STOs). Pan Gongsheng, a deputy governor of the PBOC, has mobilized the same rhetoric used with regard to initial coin offerings (ICOs) in describing STOs, accusing security token offerings of comprising “illegal financial activity.”

Also Read: Federal Agents Told This Silk Road Moderator to Fake His Own Death 

Security Token Offerings Deemed to Comprise Illegal Activity in Mainland China

Gongsheng recently told state-owned media channel China Central Television that STOs are “still essentially an illegal financial activity in China.”

Speaking at the recent 2018 Global Wealth Management Forum, Huo Xuewen, the director of the Beijing Municipal Bureau of Local Financial Supervision, also sought to discourage entities from conducting STOs, stating of the emerging phenomenon: “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.”

Despite Widespread Perceptions of Greater Legitimacy, Chinese Officials Lump STOs Alongside ICOs

Gongsheng claimed that “virtual money has become an accomplice to all kinds of illegal and criminal activities,” seeking to emphasize the successes of the Chinese ICO crackdown that was launched during September 2017. Prior to action taken against Chinese ICOs, it was approximated that 80 percent of global ICO financing was taking place in mainland China.

The deputy governor added that the majority of ICOs conducted in China are suspected of engaging in illegal fundraising, pyramid schemes, and other financial fraud.

Cao Hua of United Asset Management predicted that China’s regulators will “continue to strengthen regulation in the financial technology market” to ensure stability, adding that “new business models in the financial technology sector are not welcome in China now.”

A tokenized real estate investment trust STO was conducted in the U.S. at the end of November, which saw Convexity Prosperities launch a token offering seeking to raise $20 million from accredited investors in partnership with private investment tokenization platform Harbor. For now, though, STOs, as with ICOs, remain largely off-limits to Chinese citizens who are barred from participating.

Do you think that STOs will be met with regulatory hostility in other jurisdictions? Or will a crackdown be implemented by few states other than China? Share your thoughts in the comments section below!

Images courtesy of Shutterstock

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The post PBOC Deputy Governor Calls STOs ‘Illegal Financial Activity’ appeared first on Bitcoin News.

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pboc stos offerings activity financial illegal governor

pboc stos → Результатов: 4


Governor of China’s central bank defines STOs as illegal financial activity in the country

The People’s Bank of China (PBoC), the country’s central bank, highlighted the illegality of Security Token Offerings (STOs) in the country, South China Morning Post reported on December 9. Pan Gongsheng, a deputy governor of China’s central bank, told a summit in Beijing “that ‘illegal’ financing activities through STOs and ICOs (Initial Coin Offerings)  were […]

2018-12-10 09:29


Deputy governor of China’s central bank defines STOs as illegal financial activity in the country

The People’s Bank of China (PBoC), the country’s central bank, highlighted the illegality of Security Token Offerings (STOs) in the country, South China Morning Post reported on December 9. Pan Gongsheng, a deputy governor of China’s central bank, told a summit in Beijing “that ‘illegal’ financing activities through STOs and ICOs (Initial Coin Offerings)  were […]

2018-12-10 09:29


People’s Bank Of China (PBoC) Says Security Tokens (STO) Are An “Illegal Financial Activity In China”

China’s Central Bank, the People’s Bank of China, reported to the South China Morning Post its decision concerning security token offerings, noting that they are illegal in the country. The bank’s deputy governor Pan Gongsheng appeared at a summit in Beijing and there, he discussed the “illegal” financing activities that have been effectuate with STOs […]

2018-12-10 06:11