STOs are Banned in China, Financial Regulator Says
Security Token Offerings (STO), an analog of the ICO, is illegal in mainland China, according to senior officials of the Central Bank. Those who try to conduct the crypto crowdfunding will be “kicked out”.
Pan Gongsheng, a deputy of The People’s Bank of China governor, said that STO and ICO represent illegal financial activity. Despite the ban of such activities last year, crypto crowdfunding still threatens China.
The ban, according to Gongsheng, was a necessary measure, because chaos in the crypto market could harm the overall stability of China. Cryptocurrencies have become an integral part of illegal and criminal activity. Most of the ICOs that the regulator has prohibited were implicated in illegal investment raising, Ponzi schemes, and other financial crimes.
According to Huo Xuewen, the heads of the Bureau of Financial Work, those who try to conduct STO in China or promote this kind of crowdfunding will be “kicked out”.