A spokesman for the Chinese Financial Market Authority has issued a warning against Security Token Offerings. In a speech in Beijing, Huo Xuewen advised investors not to deal with the new financing method.
When China issued an ICO ban towards the end of last year, the Bitcoin formula space was hit by high waves
The Bitcoin formula share price reacted immediately with a sharp bend: https://www.onlinebetrug.net/en/bitcoin-formula/ As a result, many Chinese blockchain companies migrated – destinations included Japan and the Hong Kong Special Administrative Region. Now the financial supervisory authorities have also commented on security token offerings – but so far there have been no major reactions.
Security token offerings are currently on the rise – at least that’s what many investors say. The idea behind this sounds very promising: Investors acquire company shares with the security tokens. This should ultimately offer more security than is the case with ICOs, for example. Initial coin offerings do not have the best reputation in the Bitcoin community, as they are often only used to quickly generate capital without actually performing.
Nevertheless, Huo Xuewen of the Chinese Financial Market Authority issued a warning to investors. According to this, interested parties should only invest as soon as STOs are legal – but this is not the case at the moment:
„I hereby warn all those who issue and advertise STOs in Beijing. My advice is to only invest in such projects if the government has declared them legal.“
Control should remain with financial supervision
Finally, it is in the interest of financial supervision to retain control over people’s asset management:
„We must manage the wealth of high-end clients, wealthy individuals and the wealth of people – that is the responsibility of all asset managers in Beijing. From this perspective, we need a diversified asset management organization that requires the management of more than $30 million of wealthy client assets and the wealth of ordinary people,
a Chinese news portal quotes him. Security Token Offerings therefore do not fit into this concept.Categories: Bitcoin community