Mars STO Research Institute: a correct way to interpret “banishment”, designing tokenomics according to regulatory policy is the key to STO’s success

Mars STO Research Institute: a correct way to interpret “banishment”, designing tokenomics according to regulatory policy is the key to STO’s success

Dec 3rd| Investment By:Linda
Without local regulatory approval, security token fundraising and promotion would definitely be illegal; this is within financial supervision standard procedure and not against security tokens alone.

On December 1, at the 2018 Global Wealth Management Forum, Xuewen Huo, head of the Beijing Financial Supervision Authority discloses warnings about illegal fundraising activities regarding Security Token Offering (STO), that banishment would follow such conduct. He said: “I will remind those who promote and issue STO in Beijing to only engage in the activity when the government has legalized them.”

In regard of the matter, Mars STO Research Institute professional technology committee member Youping Zhu comments that STO offering and sales within China is often just ICO in disguise, which would be considered illegal; however, STO training and academic activities are not, “banishment” is a vague word. This is a critical time to initiate STO discussion, in turn helping regulators to understand and operate more accurately. 

Mars STO Research Institute’s advisor Hongtao Qiao expresses that the media is reading too much into the word “banishment”. Every supervisory body has local policies, as SEC grants permission to qualifying American investors on STO in the US. Without local regulatory approval, security token fundraising and promotion would definitely be illegal; this is within financial supervision standard procedure and not against security tokens only.

Songya Zhang, Mars STO Research Institute’s professional committee member, indicates that any forms of fundraising is financial activity, thus a complete set of regulatory policy is required for opening up STO in China. He also warns readers not to participate or promote in STO in China, not just Beijing, even if it's an oversea project. This is not a government approved type of security offering. 

Mars Finance President and head of Mars STO Research Institute, Rachel Liu believes that STO is tokenized security but still a security at its core, and its financial attribute should match local financial supervision policy. She points out the four directions for Mars STO Research Institute’s first stage: 1. global regulatory policy and interpretation 2. global STO implementation method 3. global STO cases study 4. industry analysis, insights and foresight advises.