People’s Bank of China Officially Bans Security Token Offerings

During the last couple of months, China has often reiterated its aggressive position towards digital currencies. A similar event recently took place, after the People’s Bank of China (PBoC) decided to ban security token offerings, also known as STOs.

Banning the Successor to ICOs

For those who do not know, STOs are considered the successors to ICOs. They’re quite similar in purpose, yet there are a couple of differences between the two crowdfunding methods. As such, an STO investment is financially-backed via a company’s assets, revenue or profits. On the other hand, ICOs do not offer any investment backing, yet start-ups give investors value and utility tokens.

It seems that the move was fuelled by the fact that despite the bans on Initial Coin Offerings, numerous start-ups were still holding token sales within the country. Pan Gongsheng, who is the deputy governor of the PBoC, stated that both ICOs and STOs are illegal activities, and they’re still quite prevalent in China. According to him, “the STO business that has surfaced recently is still essentially an illegal financial activity in China […] Virtual money has become an accomplice to all kinds of illegal and criminal activities.”

Additionally, the deputy governor stated that most of the ICOs and STOs taking place in China fail to abide to the regulatory framework, and thus tend to conduct activities such as pyramid schemes, fraud and more. According to him, if the PBoC and Chinese government failed to take action back in September 2017, the ICO and digital currency market would have massively hurt the country’s economy. Of course, there aren’t too many studies that can determine whether this is true. However, it is important to keep in mind the fact that before the crackdown took place, China was the world’s biggest hub for ICOs and digital currency transactions. In fact, a study showcased that over 80% of crypto-related activity was taking place in the Asian country.

The chief of an important Chinese financial regulator also recently warned crypto-related start-ups and the international community to avoid promoting and holding STO and ICO activities in Beijing. Failure to do so would lead to prosecution and deportation for the foreigners involved.

Based on everything that has been outlined so far, it seems like the fintech market in China is no longer a viable option for either start-ups looking to promote their services, or potential investors. However, activities such as holding cryptocurrency for a profit aren’t yet considered illegal. After all, completely banning a decentralized cryptocurrency would be a difficult endeavour.


Featured Image via BigStock.

binary options europe

Leave a Reply

Your Name (required)

Your Email (required)

Your Message

BonusMin. DepositMax. ReturnsRating
ayrex$10,000$20090%Rating Ayrex Options Review
$10,000$581%broker Rating Freestyle Review
Finmax$10,000$20090% FiNMAX Review
StockPair$20,000$585%broker Rating Falcon Finance Review
24optionUnlimited$25089%Top Binary Options Brokers Rating 24option Review

To invest with binary options you will work with an investment broker who is licensed to work in this field. Working with your broker, you will identify which asset you want to buy an option on, how much you want to invest and when the option will expire. Once the option is placed, you simply watch the trading activity on that asset to see if your prediction was accurate or not.

Binary options are one of the most popular trading choices for investors today, due in large part to their simplicity and the fact that you always know all the risks and payoffs ahead of time.

  • regulated: we promote only regulated brokers whose business models and marketing practices are checked by relevant government authorities.
  • special features: here we list all the important features that a broker offers. These are usually listed as perks offered trough various account types which bring different levels of service, depending on the minimum funds deposited
  • bonuses: almost every Top Binary Options Brokers offers these rewards that increase trading potential. Fair Binary Options also lists terms and conditions that come with the bonus money so traders always know how will these affect their trading efficiency.
  • the best binary trading platforms reviewed: we review the software that makes trading possible. There are several big providers, such as SpotOption, TechFinancials, Tradologic, MarketsPuls… Every software has some special characteristics, and not every software is suited for every trader
  • assets: Fair Binary Options review provides basic info on the amount of assets available for trading
  • customer support: we chat with the customer support to test how the broker has set up the help desk that should support traders. This is the best way to assess the service.
  • payments: we list all the payment options available by the Top Binary Options Brokers, list minimum deposit requirement
  • withdrawals: we warn traders if withdrawal requirements are too high, or if it takes a long time to get the money back.
    • Keras - self-learning NEURAL networks for
      Stock market forecasting
      Get it FREE

      *number of participants is limited

      Customer Testimonials

      Fellas what broker is legit in States ? binary options binary options broker USA?