[HKBCS 2018] Demand for STO in China Shows Eagerness For it to Become a New Wave of Financial Services

Recently, a Beijing official has publicly stated that the issue of security token offerings (STO) is regarded as illegal financing. It seems that even STO is untenable in China. But the industry seems to have a different view.

Ricky Ng, the Founder of i-house.com, laughed and said at the Hong Kong Blockchain Summit 2018 that he was not arrested and would not be arrested in the foreseeable future in dealing with STO.

He added that the comment came from a local officer and believed that it did not represent the views of the entire central government, as well as different practices among regions. He believes that the central government will not take charge of the supervision of STO and ICO in short-term future. Therefore, people who want to engage in related business, it is recommended to develop overseas.

Michael Wong, a Managing Partner at MaiCapital, said that he had been repeatedly warned when he talked about the topic of security tokens in Guangzhou last week. He laughed and said, “Don’t mention coins and tokens, use ‘digital share’ instead.”

Julian Kwan, Chief Executive Officer of InvestaCrowd, said that if STO is illegal, that means the issuance of traditional securities is illegal as well. So he does not understand the comment, and he thinks there is still a strong demand for STO in the market.

Looking forward in the coming year, Cyrus Wen, Partner of STI Financial Group believes that although security token is only digitized traditional assets, with the facilitation of blockchain technology, it will become the next wave of financial services and last for a long time, so STO is definitely worth the time to observe.

Apart from the liquidation of an illiquid asset, Polymath’s Chief Product Officer, Thomas Borrel, pointed out that we should view security tokens as not a threat, but an opportunity to address the compromise that had to be made in traditional investment.