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The head of the Beijing Finance Bureau called the sale of security tokens illegal

The head of the financial bureau in the Chinese capital warned companies that issue STO tokens that such offers are illegal. The official recommends projects to refrain from selling such tokens until they receive legal status from the authorities.

Security Token Offering (STO) is partly similar to ICO – the company releases tokens for sale to investors. But if, in the case of ICO, people acquire tokens in anticipation of a subsequent increase in their value (due to product development), STO tokens give different dividends. It is also believed that such tokens must meet the standards of regulators, and this will allow people from all over the world to invest.

Since mid-November, the situation in the cryptocurrency market is tense: many coins have sunk in price. Bitcoin, long held at $ 6000, currently stands at around $ 4000.

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