Huo Xuewen, the head of Beijing’s Municipal Bureau of Finance, has cautioned that security token offerings (STOs) fall foul of the law in the capital city of China, local media agency Caijing reports. He urged startups and companies to stay away from this form of fundraising, at least until the authorities devise a legal framework for STOs and give them the green light.

In a speech on Saturday at the 2018 Global Wealth Management Forum, Xuewen noted:

“Recently, initial coin offerings (ICOs) have become abandoned, and a new concept, called STO, is currently advertised. I will make a risk warning to those who are promot…

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