TheCryptoUpdates
Cryptocurrency News

Cryptocurrency News | China’s Deputy Governor Pan Gongsheng labels STO’s illegal

According to a report published in, South China Morning an English-language local news outlet , the People’s Bank of China highlighted the illegality of Security Token Offerings.

Pan Gongsheng, a deputy governor of China’s central bank  told in a Summit in Beijing that financial frauds through ICOs and STOs are still mainstream despite blow from regulatory authorities.

He further mentioned that if the government had not taken the necessary steps, the volatile crypto market would have disrupted the financial stability in China.

The central bank official pointed out that “the STO business that has emerged recently is still essentially an illegal financial activity in China.” Gongsheng also reiterated the stance that cryptocurrencies are associated with crime:

“Virtual money has become an accomplice to all kinds of illegal and criminal activities.”

The article also mentions that the chief of the Bureau of Financial Work, Huo Xuewen, warned against STOs about a week ago.

He said:

“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.”

On the other hand, blockchain adoption — the tech behind most cryptocurrencies — has been relatively embraced in China. Recently,  a Chinese Internet Court has started using blockchain to protect the intellectual property of online writers.

The legal basis of this development can be assumed to be the Chinese Supreme Court’s ruling from September, which established that blockchain can legally authenticate evidence.

 

Related Articles

Cryptocurrency News | Orion Span Project : Cryptocurrency Enthusiasts can now spend 12-Nights in Space

Supriya Saxena (Senior Correspondent)

Binance to Make Listing Fees 100% Transparent and Donate to Charity

Vijaya Bharti (Staff Writer)

CME: Bitcoin Futures Volume Observes a 41% Growth

Saurabh Singla