China: ICOs, STOs, IEOs Illegal and Punishable

Asia China
Maciek Klimowicz
Written by Maciek Klimowicz

The public notice marks the reemergence of China’s highly critical stance on cryptocurrencies, claiming that promoting ICOs, IEOs, STOs, stable, digital or integral currencies is disruptive to economic order.

Beijing Internet Finance Industry Association has released a public notice on initial coin offerings (ICOs), security token offerings (STOs) and initial exchange offerings (IEOs) dubbing them all “illegal financial activities” and warning participants in any of the above of severe legal consequences.

Established in 2014 under a Beijing Internet Credit Industry Association name and later renamed the Beijing Internet Finance Industry Association the organization is a “non-profit self-disciplined social organization approved by the Beijing Social Organization Registration Administration.”  whose goal is “promoting the development of the industry”, reads the association’s LinkedIn Profile.

The public notice marks the reemergence of China’s highly critical stance on cryptocurrencies, claiming that promoting ICOs, IEOs, STOs, stable, digital or integral currencies is disruptive to economic order, brings risk and instead of being based on blockchain technology, it only speculates in the concept – furthering the image of China’s love-hate relationship with the new tech.

According to the notice, starting from March 21, 2019, those involved in the abovementioned activities face a number of consequences, from websites and apps closures to business license revocation.

About the author

Maciek Klimowicz

Maciek Klimowicz

A seasoned writer and editor with 10 years of experience in a variety of print and online media. Recognizing the transformative potential of the blockchain technology, Maciek has now put his pen to work to explore the key issues of this fast-evolving sector. Contact him on [email protected].

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