The People’s Bank of China (PBoC) which is the central bank in the country, recently highlighted the illegality of Security Token Offerings (STOs) in the country.
According to the latest crypto news as reported by the English-language outlet South China Morning Post (SCMP), a deputy governor of the China central bank named Pan Gongsheng reportedly said in a summit in Beijing that ‘illegal’ financing activities through STOs and ICOs “were still rampant in the mainland despite the nationwide clean-up of the market last year.”
Gongsheng also stated that if the government hadn’t stepped in, the chaos of the crypto market could have hurt the overall financial stability in the country. The central bank official also said that “the STO business that has surfaced recently is still essentially an illegal financial activity in China.”
As he wrote, the state of cryptocurrencies is associated with crime, saying that “virtual money has become an accomplice to many illegal and criminal activities.”
According to this article, Gongsheng noted that “most of the financing operations conducted through ICOs in China were suspected of being illegal fundraising, pyramid sales schemes and other financial fraud.”
In the article, he also mentions that the chief of the Bureau of Financial Work in the country, Huo Xuewen, warned against STOs about a week ago, stating:
“I want to warn those who are promoting STO fundraising in Beijing. Don’t do it in Beijing. You will be kicked out if you do it.”
Meanwhile, blockchain adoption has been relatively embraced in China and is in a completely different type of regulation and adoption compared to crypto. The legal basis of blockchain can be assumed to be the Chinese Supreme Court’s ruling from September which saw blockchain legally authenticating evidence in the country.
Leader Suspect In Billion Dollar Laundering Via Crypto Is Seeking Extradition To Russia
‘’FinCEN acted in coordination with law enforcement’s seizure of BTC-e and Vinnik’s arrest. The Internal Revenue Service-Criminal Investigation Division, Federal Bureau of Investigation, United States Secret Service, and Homeland Security Investigations conducted the criminal investigation.’’Since he was arrested, Vinnik pleaded innocence and said that his biggest mistake was working for the BTC exchange platform. He is also believed to be involved in the Mt.Gox stolen funds scheme. The FinCEN report shows that via the BTC-e platform, more than $120 million were laundered and were connected with the now defunct platform. Vinnik is asking to be extradited to Russia after the Commissioner for Human Rights, Tatyana Nikolayevna Moskalkova asked for help from the United Nations High Commissioner for Human Rights Michelle Bachelet with the goal to take him to Russia. Tatyana claimed that Vinnik lost nearly 30% of his weight and that he needs to be with his wife who is suffering from brain cancer. In the U.S Vinnik was indicted on 21 counts and in Russia, he is only accused of smaller fraud charges that can be paid for about 10.000 Euros. The Greek court in 2017 approved Vinnik’s extradition to Russia but later another court decided to give him extradition to the United States. Later, the Greek Supreme Court ruled that Vinnik should be extradited to France so a clear decision has not been delivered yet.
Crypto Law Consultation Period Officially Started By The Swiss Federal Council
Mexico: New Crypto Regulations Could Shake The Country’s Exchanges
"If there are no Mexican-based exchanges, Mexicans will inevitably use exchanges based in other jurisdictions. Some of these foreign exchanges may be sensibly regulated by more forward-looking governments, but others may be rogue operations that deliberately evade any regulatory jurisdiction,""The average person has no idea how a car works, and yet people are allowed to drive them," the statement said. Bexico's proposals are subject to a 60-day consultation period during which a lot of things may change. Right now, industry officials and public members should outline their opinions on the case.
The Swiss Federal Assembly Approved A Motion For Crypto Regulation
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