In a disheartening move by The People’s Bank of China, Pan Gongsheng, the deputy governor, expressed that “illegal” financing activities are going on in the country on the heads of STO’s and ICO’s.
Calling coin offerings ‘Illegal’ is what is echoing around the country right now.
‘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.’
These were his fiery remarks on the state-owned China Central Television.
He also expressed that Beijing was right in their decision to shove away crypto fever that could have served as toppling stone for the economy.
Last year, Beijing launched a crackdown on all ICOs, ordering all platforms to halt digital currency issuance, stopping even the conferences on this subject from being held. With China as the supreme player in the crypto market, it was a blow-back they never recovered from.
Now, this has been glorified as the move that prevented a ‘chaotic’ financial situation.
A week ago, Chief of the Bureau of Financial Work had also warned against STOs and the ‘demons’ they had unleashed in mainland China.
“I want to warn those who are promoting STO fundraising in Beijing. Don’t do it in Beijing. You will be kicked out if you do it.”
China, like India, has adopted a limited approval for blockchain. A Supreme Court ruling has allowed blockchain to be a legal authenticator for evidence and is being used in a limited scope.