Editor’s note: This article comes from the vernacular block chain (ID:hellobtc), author: Shaw, the Star daily is authorized to release.
12 1, director of the Beijing Local Financial Supervision Bureau Huo Xuewen warned in a speech STO practitioners, if carry out activities in Beijing, the government will be regarded as illegal financial activities to drive away. This statement to the recently touted by the market concept of STO reduced the temperature, doubts it, identity is, the moment Public opinions are divergent. How to interpret the compliance of STO at the present stage on the basis of the corresponding theory is the subject that this article tries to discuss.
This is not as legal advice for any specific project, do not blindly.
Last night, the circle of friends was on the screen by STO, and the local regulatory authorities put forward STO as an illegal financial activity. A legal person of a certain institution proposed that under the guidance of a lawyer, it was completely legal to raise overseas funds through the issuance of securities based certificates by the law of the United States. The old friends in the industry are a bit confused and have private letters to me. Is the STO illegal, or is it possible to comply with the legal rules and regulations at home and abroad through the guidance of lawyers?
This is a very frontier issue. Although I have read a master’s degree in law in the United States, I have not hosted American law for ten years, and in addition, the private international law itself has a higher professionalism. We try to do some analysis, for reference, please understand you.
01 STO, the prospect of how?
To tell the truth, the coin bears a long time, from a stable currency to STO seems to be within the circle of friends all in the “search”, trying to find a way to go through the road. The project is also observed. Now the capital chain is too tight, there is already a project side of the account, only sixty thousand RMB, and to send a pile of “substitute for” common purchase of natural people.
The stable currency should be linked to the coin of the law, and there is no project side of the back of the French currency. Of course, it can not walk the road; the rest of the heat is the concept of STO. In other words, the project has no legal currency, but the assets can be carried out by ABS securitization to the support of the resources (other digital currencies).
Last night, a message came from the annual meeting of Chinese enterprise leaders. The director of the Beijing Municipal Bureau of local finance supervision and administration, in his speech, warned STO practitioners that if the activities were carried out in Beijing, the illegal financial activities would be displaced. A new message appeared immediately. A legal person explained how to objectively recognize the legal compliance problem of STO. Under the guidance of law, it was completely legal to record the funds for issuing securities type through the law of the United States. It seems that the latter has taken a shot to the old friends in the circle, and even a friend’s private letter asking me as a practicing lawyer can I guide them to cross the border line and go to the United States to finance smoothly.
In fact, I am a Chinese practicing lawyer, although there is a foundation of American law, but I do not know all the laws and cases of the states in the United States.
02 what does the Chinese law think about STO?
I believe that both the government and party, a party or the market, there is a consensus that STO is not valid in the territory of China (illegal public financing or illegal issuance of stocks, Securities Act) cannot Chinese citizens for financing.
Of course, in specific operations, the total project through the eighteen bend, around to the end, or to Chinese money or raise money, that’s the truth, I don’t argue. We can discuss a more interesting topic, if it is in accordance with the exemption clause of the United States Securities Act (Reg A/D/S), our project or the actual controller is our resident project smooth customs clearance, in the United States law is legal, it can be allowed to the provisions of the “qualified” investors to raise digital currency funds or equivalent. If financing disputes or infringement disputes, need to execute the project issued through assets represented by the letter, then Chinese court will support this request?
I ask the master of civil litigation (former civil judge) Ms. Zhang Xue, if IC0, STO in some countries is legitimate, but is illegal in our country. Domestic projects to send money overseas, the underlying asset is domestic assets (including intellectual property and real estate), then buy the card from foreign channels through holding the currency, to raise funds Chinese sued for confirmation (equity currency) contract, the court sentenced Chinese will how?
She recommended to me a law “People’s Republic of China law for foreign related civil relations law”, fifth of which clearly states: the application of foreign laws will damage the social public interests of the People’s Republic of China, People’s Republic of China law applicable. Inside, in fact, stakeholders, especially relates to financial consumer protection act or contract, I’m afraid not only comply with the parties to the contract of personal meaning, but also to take care of more important “interests”. Perhaps some friends through a variety of domestic currency on behalf of the holders, various foundations, and finally in the packaging of local compliance overseas bought financial products, but, was once involved in domestic assets Chinese prodding.
The 03 law of our country will transplant the legal provisions on STO?
As a lawyer, I also sincerely hope that the industry can develop more more strong, rather than endless leaves Xiao Xiao falls. I felt sad to see the big buddies of the sermons, who were chased by a group of swarms from all over the world. It’s hard to imagine them. They are now tired of “irrational rights”…
Because of the different understanding and definition of the term “securities”, China and the United States have a different attitude towards STO. This does not mean that the United States is friendly to STO. It is confirmed from the side that their serious attitude to the wanton currency is no less than us, only because the securities in the United States law are relatively broad. Since STO’s testimony is a broad sense of securities, it is always necessary to give a regulatory statement (the attitude of the Hongkong region to the virtual assets in the early November of this year is very similar, not positively encouraged but must not be managed).
At the same time, the stock is “strict” in China’s company law and securities law under interpretation (not all of the assets equal portions can be regarded as a kind of securities), combined with our country has a typical charges: article 179th of the criminal law without issuing shares, securities crime, which means we the legal structure and management in different ways. Since we do not agree with the approval of the relevant departments, the market subject can issue securities on its own, nor does it give “legal exemption”, so it is illegal to engage in IC0 or disguised IC0 in China.
It was heard that there was a local attempt to give “regulatory sandbox” to Token before September 4th, but we must understand that unauthorized issuance of stock securities or illegal operation should at least be “exempt” by the basic law of the country, not a state or a city. Even if a local red head file is exempt from some kind of business, it can not prevent the criminal law risk of illegal operation and unauthorized issuance of stock securities.
A family of words, for reference only.