Security token offerings (STOs) are illegal, at least in Beijing

Security token offerings (STOs) are illegal, at least in Beijing

Mr.Huo Xuewen, chief of Beijing’s Municipal Bureau of Finance, issued warning against investment in STO in Beijing. STO is similar to an Initial coin offering(ICO) used to raise funds plus enables holders to share the profits of a company based on an underlying asset. But authorities say new financial product without any legal framework will not be encouraged.  

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