China: ICO and STO are objects of illegal financial activity

China may significantly tighten its cryptocurrency policy. The Beijing Financial Industry Association (BIFIA) has issued a warning about illegal fund-raising activities related to ICO, IEO, STO, and stablecoins. The notice states as follows:

“Recently, there have been organizations using the concept of “financial innovation” to raise funds illegally. They hold online and offline events to promote projects related with ICO, IEO, STO, stablecoin. Such activities have nothing to do with blockchain technology, but only disturbing the normal financial order.”

Further, the document states that organizations registered in Beijing will “be shut down, be revoked business licenses, be served with penalties» if they continue to be involved in illegal financial activities. The above measures have already entered into force on March 21.

Most likely, the warning is addressed, first of all, to social networking platforms and research groups, which, according to BIFIA, use the crypto hype just to “issue money for money”.

Cryptocurrency market collapsed after the statement became widely spread in the Chinese community. However, investors, who also have doubts about the legitimacy of the Beijing Financial Industry Association, have yet to figure out what real restrictive measures will follow the document publication.

Image courtesy of Coinjournal