Regulation

Security token offerings deemed illegal in Beijing

December 3, 2018, 9:11AM EDT

Huo Xuewen, the Director of the Beijing Financial Work Bureau, said on Saturday that security token offerings (STOs) are illegal in Beijing. Xuewen also issued a warning to promoters and issuers of security tokens in the city and recommended "to only engage in such offerings when the government has legalized them." The legality of STOs is unclear in other jurisdictions of China.

The People’s Bank of China (PBoC), the country's central bank, has taken an aggressive regulatory approach since September 2017 when it banned initial coin offerings (ICOs) outright and forced some cryptocurrency exchanges out of the country. Last month, the PBoC also expressed their concern over ‘disguised’ ICOs such as airdrops. (Source: CoinDesk)