Beijing Internet Finance Industry Association Warns Risks of IEO, IMO

Beijing Internet Finance Industry Association this Thursday issued a warning over illegal fundraising activities associated with ICO, IEO, STO and stablecoins.

“Recently, there have been organizations using the concept of “financial innovation” to raise funds illegally. They hold online and offline events to promote projects related with ICO, IEO, STO, stablecoin. Such activities have nothing to do with blockchain technology, but only disturbing the normal financial order.”

The paper went on to say that organizations registered in Beijing will “be shut down, be revoked business licenses, be served with penalties” if they involve in illegal financial activities such as launching STO.

“IFO, IEO, IMO are only new ways to issue tokens. Investors shall look at blockchain rationally and develop correct development philosophy.” The paper concluded.

The cryptocurrency market fell as the paper was spread widely in the Chinese community. While investors fear what might be followed with the notice, there are also doubts about the legitimacy of Beijing Internet Finance Industry Association (BIFIA).

According to Baidu (the Chinese version of Google), BIFIA was founded in 2014. The Association was formerly known as Beijing P2P Association and renamed to BIFIA in 2017. Huo Xuewen, director of Beijing Finance Bureau, delivered a speech at the renaming ceremony.

Do you think the paper portends for future regulation? Please leave a comment.

Link of the Notice: http://www.bjp2p.com.cn/news/20190321001