Beijing Internet Finance Industry Association Warns Against STOs

Beijing Internet Finance Industry Association, a trade association of Chinese online businesses, warns investors against blockchain based “financial innovations”.

The association is concerned that people misuse the hype around blockchain technology and offer Chinese nationals investment opportinities into bad businesses.

Another concern is that blockchain-based projects are not fully regulated by the government.

The main concern though is that these offers may destabilize the economy because they have too many risks.

The organization refers two reports in which Chinese entities are condemned the use of the blockchain technology in unsafe projects.

Currently, trading with cryptocurrencies but not the cryptocurencies themselves.

The association also protests against terms like “crowdfunding”, “shared economy” and “consensus economy”.

However, several public and private companies, including Alibaba, use the blockchain technology. Their focus is on technology and not on trading.