China Binary New Fintech Group — ST View Article 9

Does STO Violate the Spirit of Decentralization of Blockchain

The year 2018 is destined to be an eventful year for the blockchain world, when the industry experienced the baptism of the storm. Approaching the end of the year, STO (Security Token Offering) has become a hot topic. Recently, the topic has gradually cooled down due to leaders’ (from the Chinese regulators) attitude statements. Insiders, followers and media seem to break away from fanaticism in an instant. …


China Binary New Fintech Group — ST View Article 8

Past and Present and Self-evolution of KYC

This article is published by China Binary New Fintech Group (ID: shenzhoushuzi_group), and is written by SUN Jiangtao (CEO of China Binary New Fintech Group and founder of Goopal Group). Please indicate the author and source when reprinting.

Over the past two weeks, the most prominent move for STO is the attitude announced by Chinese regulators. After Beijing Local Financial Supervision Bureau and BJIFIA stated that they don’t welcome STO at the beginning of this month, this weekend, deputy president of the People’s Bank of China also publicly stated that the substantive behavior of STO is illegal financial activity in China. …


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For STO, there were two node events over the past week, which had a strong contrast.

The first event was triggered by OpenFinance, the first US STO exchange receiving the compliance license. On Nov. 28, OpenFinance completed the initial trading efforts of the first trading bid — SPiCE VC, kicked off by the beta version trading platform. In other words, investors outside the US now can trade the SPiCE securities token, while local investors in US need to wait until Mar. 2019 for such deals because of time constraints. …


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In the previous article, we indicated four sectors of a qualified STO project: early-stage strategic planning and preparation, legal and financial compliance, securities token and ST circulation. The first sector, including the four steps during the early-stage strategic planning and preparation, was introduced in detail.

As mentioned in the previous article, the four sectors of STO are progressive and inter-related, forming a complete STO business closed-loop. …


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The two pieces of recent news reconfirmed that STO (Security Token Offering) is gaining popularity and rapidly attracting the public’s attention, instead of just the theoretical discussion.

The first piece of news is that EVAIO, an electric vehicle blockchain company, has negotiated with Faraday Future (“FF”) and the US Investment Bank Stifel. EVAIO looks forward to investing a total of US$ 900 million in FF through STO within three years. However, investment details are not fully determined, and the possibility of storytelling is not excluded. The magnitude and popularity of the Faraday definitely exceeds the scope of the traditional blockchain, as compared to the previously completed and ongoing projects. It is reasonable for JIA Yueting, who had been famous for his daring spirit and crazy strategies and is named as “Musk in China”, to embrace the new STO. STO is not only a brand-new choice, but a major trend. Mr. …


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Anyone’s personal efforts will seem insignificant in the face of the tide of the times, so at any time, everything should follow the tide of the time, otherwise it will be buried in the torrent of the times. Explorers of STO (Security Token Offering) should pay more attention to the trend, to avoid risks and take advantages of it.

In the previous articles, I think that STO (Security Token Offering), as a global financial practice, is moving in the right direction with the increasingly clear regulations. Relevant policy on digital currencies issued by the Securities and Futures Commission of Hong Kong in earlier Nov. also demonstrated this. However, as a new thing, it will not go smoothly. Any change in the policy level (policy is the greatest risk STO faces) will have a butterfly effect. Even some non-direct policies, such as the technology innovation board, which will be introduced by the Chinese capital market, have triggered concerns on STO among many people. They even believe that STO will be hit hard in China as a result of the technology innovation board. …


“Man was born free, but they are always in chains. Man, considering himself as the master of all the others, is more slavery than all the others.” This is a classic discussion on freedom by Rousseau. I also believe this as the true reflection on the relationship between regulation and STO (Security Token Offering).

Many people only know the first half sentence — “Man was born free” of the quotation of Rousseau, just as many blockchain practitioners consider that regulation restricts their freedom.


Recently, the first STO (Security Token Offering) on Ethereum has further driven STO to be a hotspot. On Oct. 13 (Beijing time), tZERO, a blockchain platform of the USA-based e-commerce giant Overstock, completed its (STO). The continuous addition of traditional companies has driven STO to expand from the small blockchain community to a broader mass world.

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In addition, with the Securities and Exchange Commission’s (SEC) focus and supervision on Security Token, NASDAQ’s focus on STO and willing to build a new securitization platform ,many capital giants cast their greedy eyes on it, etc.. …


The recent popularity of ST — Security Token in the industry, has a strong contrast to the current downward capital market and the upset digital currency market. Many industry insiders consider the issuance of ST — STO (Security Token Offering) as legal ICO, and others consider STO as the third wave of Fintech.

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It is clear that at the background of the depressed global capital market, a new thing is needed to cheer and comfort the industry’s practitioners. …

Jiangtao Sun

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