The director of Beijing Municipal Bureau of Local Financial Supervision, Huo Xuewen, has said that the agency sees Security Token Offerings as an illegal activity, according to a Dec. 1 report in local media outlet, Caijing.
Xuewen’s comments were made at the “2018 Global Wealth Management Forum” on Dec. 1 where he promoted the importance of education and sustainable wealth management and stated that having “complicated” wealth management products were not grounds to ignore licensing.
“Recently ICOs are being abandoned, and a new concept called STO has been advertised. With today's platform, I will make a risk warning to those who are propagating in Beijing and want to issue an STO. Don't do it in Beijing. If you do it in Beijing, you will be taken away for illegal financial activities.”