Beijing Internet Finance Industry Association Issued a Risk Tip Saying "STO is Suspected of Illegal Financial Activity"

Beijing Internet Finance Industry Association Issued a Risk Tip Saying "STO is Suspected of Illegal Financial Activity"

Dec 11th 2018| Investment By:Mars Finance
Institutions and individuals should strictly abide by national laws and regulations, and immediately stop all kinds of STO activities such as publicity, training, and project promotion.

Reinforcing the Security Token Offering (STO) ban in China, on December 4, Beijing Internet Finance Industry Association (BJIFIA) released a notice called "Risk Tip on the Prevention of the Implementation of Illegal and Criminal Activities in the Name of STO", saying recently they discovered some institutions and individuals conduct publicity and training, project promotion, financing transactions and other activities in the name of STO (Security Token Offering), so they reminded relevant institutions and individuals: all financial business shall be brought into the regulatory. STO is suspected of illegal financial activity, institutions and individuals should strictly abide by national laws and regulations, and immediately stop all kinds of STO publicity and training, project promotion, financing transactions and other activities. Institutions and individuals suspected of violating laws and regulations will be severely punished by expulsion, website platforms and mobile apps being shut down, and business licenses being revoked.

According to the official website, Beijing Internet Finance Industry Association was founded in December 2014, formerly known as Beijing Internet Loan Industry Association, renamed as BJIFIA in September 2017. BJIFIA is a professional industry association jointly initiated and established by Internet finance industry institutions and relevant industry institutions. It is a non-profit self-regulatory social organization approved and registered by Beijing Social Group Registration Administration Authority.

The following is the full text of the notice issued by BJIFIA "Risk Tip on the Prevention of the Implementation of Illegal and Criminal Activities in the Name of STO":

On September 4, 2017, the People's Bank of China and other six ministries jointly issued "Risk Tip on the Prevention of the Implementation of Illegal and Criminal Activities in the Name of STO", and made clear that "the token issuance financing refers to financing entities raise so-called 'virtual currencies' such as bitcoins and ethereum from investors through illegal issuance and circulation of tokens. In essence, it is an act of illegal public financing without approval, which is suspected of illegal sale of token vouchers, illegal issuance of securities, illegal fund-raising, financial fraud, pyramid selling and other illegal and criminal activities." Since then, the People's Bank of China, the China Banking and Insurance Regulatory Commission, Office of Central Cyberspace Affairs Commission, the Ministry of Public Security, State Administration for Market Regulation, National Internet Finance Association of China and the Beijing Municipal Financial Supervision and Administration Bureau have issued risk tips for many times.

Recently, we found that some institutions or individuals still continue to engage in publicity and training, project promotion, financing transactions and other related activities in the name of STO.

Hereby, we solemnly remind all relevant institutions and individuals in this city that all financial businesses should be subject to supervision. STO is suspected of illegal financial activity, institutions and individuals should strictly abide by national laws and regulations, and immediately stop all kinds of STO publicity and training, project promotion, financing transactions and other activities. Institutions and individuals suspected of violating laws and regulations will be severely punished by expulsion, website platforms and mobile apps being shut down, and business licenses being revoked.

At the same time, we remind that investors should remain rational, enhance risk awareness, take the initiative to resist illegal financial activities, beware of being deceived and report to concerned branch actively if discover any clew of illegal crime.

Beijing Internet Finance Industry Association

December 4, 2018