Archive 2017: Chinese regulator about 60 ICOs: Investigation into illegal offering and Binance securities sales

In some articles, when it came to the beginning of Binance and Guangying Chen (Heina Chen) and Changpeng Zhao, specifically Bijie Tech (Shanghai Bijie Network Technology Co., Ltd (Shanghai Daqing Networking Technology Co, Ltd.) under registration number 310230000837235), we pointed out - that Binance (the management company of Shanghai Bijie Network Technology Co., Ltd, and Binance owner Guangying Chen were under investigation by the Chinese regulator in 2017 on charges of selling unregistered securities on their exchange. Difficult, but we were able to find materials from that time and translate them into Russian/English from Chinese. How this investigation ended is unknown, is the investigation in progress or closed - also no information, if you live in China and can send this information, we would be grateful.

So, there was an article on the Chinese website Cainiaolc.com, specifically at the link http://cainiaolc.com/article/446777 about these events in 2017. The article has now been deleted, but is preserved in the Web Archive, at the link here.

The point of the article is as follows (translation into accessible language):

A list of 60 initial public offering token ICOs from the Financial Risk Elimination Bureau has been published online

Author: Jingse Qhaijin
2017-09-04
Material taken from the source Jinse.com Portal «Gold, Finance and Economics»

Briefly about the main thing: On Sept. 3, the steering group of the Internet Financial Risk Elimination Bureau in Fujian Province published an urgent notice, which includes a reference list of ICOs related to illegal securities trafficking (there are 60 in total). Here's a look at which companies made the list.

On September 3, the steering group of the Fujian Internet Financial Risk Elimination Bureau published an urgent notice, namely the "Notice of ICO Release Procedure," which outlines the current requirements for working on organizing and resolving current crowdsale regulatory issues.

NOTIFICATION OF THE FUJIAN INTERNET FINANCIAL RISK ELIMINATION BUREAU STEERING GROUP 2017 №35 " ABOUT THE ORDER OF ICO ISSUANCE"

Urgent: Notification of Fujian Provincial Administration 2017 №35

The Special Internet Financial Risk Elimination Office of all urban districts and the Pintan Comprehensive Pilot District: State Bureau of Internet Financial Risk Elimination " Notification of ICO Release Procedures " ( Notification 2017 № 99 ) has now been sent to you.

At the same time, given the reality of your province, the following conclusions are presented. Please implement them consecutively.

1) All local offices are requested to organize their departments according to the requirements of the ICO Notice (Notice 2017№99) for immediate regulation of token issuance. Token issuance funding platforms within their jurisdiction must report to funders and senior executives on the amount, timing of funding, etc., as well as have full information on the terms of token issuance funding transactions.

Please provide the above information to the Provincial Risk Elimination Office prior to the start of business on the morning of Sept. 4

2) In order to organize effective token issuance and financial activities, the State Financial Risk Elimination Bureau provides a list of token issuance platforms (ICOs) on the Internet. Based on this, local Risk Elimination Bureau offices should additionally organize detailed planning and make sure nothing is overlooked. Where no token issuing platform is found, "zero reporting" must be implemented.

3) In accordance with the requirements of the "Notice on ICO Issuance Procedures" (Notice 2017#99), please ask the local offices of the Bureau to control token issuing platforms within our jurisdiction: implement measures such as interviews and monitoring of token issuing platform managers, as well as monitoring of their accounts. This will help protect investors' interests, prevent negative publicity incidents, and prevent and address financial risks in a timely manner.

The contact persons: Zhuang Shaolong

0591-87832610

Fax: 0591-87812664

Lin Xinda 0591-87808360

Appendix: Reference list of ICO platforms provided by the State Internet Financial Risk Elimination Bureau. The Fujian Internet Financial Risk Elimination Bureau Steering Group (Deputy Head of the Fujian Provincial Financial Work Bureau) September 2, 2017.

The pictures show the "About ICO issuance procedure" document (Fujian Administration Notice 2017 No. 35)

From the screen shots, it can be seen that the "notice" was issued on September 2 and says that the steering group of the Fujian Province Internet Financial Risk Elimination Bureau (hereinafter referred to as the group) in accordance with the "Notification", and based on the situation in the province, offers guidance to control financial activities and token issuance in Fujian Province.

Requirements for the group: 1 All local offices are invited to organize their departments in accordance with the requirements of the "Notice of ICO issuance procedures" (Notification 2017 № 99) to regulate the issuance of tokens. Token issuance trading platforms must report to financial institutions and senior executives on bitcoin-related issues, and have full information on the conditions of token transactions.

Please provide the above information to your local Risk Elimination Office on the morning of September 4 2. The local Risk Elimination Office offices should additionally organize detailed planning and make sure nothing is missed. Where no token issuance platform is found, "zero reporting" is required.

3. The local offices of the Bureau need to implement the control of token issuing platforms departments in accordance with the requirements of the " Notification on the procedure for issuing ICOs " (notification 2017 № 99): to introduce monitoring of token platform managers and their accounts to protect investors' interests and prevent emergencies.

The content of this notice, posted online, is very detailed, and the requirements directly address the main risk factors associated with ICO activity. However, “Golden Finance” reporters searched the relevant documents on the "Fujian Provincial Government Public Information Platform" and found no relevant results, so they could not confirm the authenticity of the information.

Recently, active financial activity associated with ICOs has become popular at home and abroad. Since this new and convenient method of accumulating funds is not regulated by relevant laws and regulations, it is in demand in many new projects and has become the best payment method. Especially with the gradual growth of the digital asset market and the adoption of blockchain technology in society, many new projects are taking advantage of this technology and have quickly initiated the issuance of ICO tokens to connect capitals.

While there are many new high-quality blockchain projects that have received the necessary funds for development, there are also projects that enjoy hype and demand for their own sake, which has led to a mixed development of the blockchain industry and, therefore, increased the risk to the ability to issue ICO tokens.

A few days ago it was reported that Chinese regulators would take action against the ICO industry. China's Central Bank and the China Securities Regulatory Commission were reportedly involved in the study of a plan to oversee ICOs. The plan will do relevant work under the "Measures to Prohibit Illegal Financial Institutions and Illegal Financial Activities. Measures "(State Council Order №247), including illegal fundraising for ICO projects.

Binance and Guangying Chen

As we can see in Table № 14 - Binance, Shanghai Bijie Network Technology Co., Ltd (unregistered security, apparently a BNB token) and Chen Guangying appear. After that, Binance very quickly left the territory of China... allegedly headed for Japan.

19.02.21

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