Get the facts: Is it legal to issue a token?
In recent years, with the continuous development of blockchain technology, issuing tokens has become a popular financing method. However, the issue of whether issuing tokens is illegal has always been a concern. In this article, we will briefly introduce this topic with you, hoping to be helpful to everyone. First, let’s be clear, issuing tokens is not illegal per se. Whether it is through ICO (Initial Coin Offering) or STO (Security Token Offering), issuing tokens is a legal act. However, if there is fraud, illegal financing, money laundering, etc. in the process of issuing tokens, then illegal issues will be involved. Therefore, during the process of issuing tokens, it is necessary to comply with relevant laws and regulations to ensure compliant operations.
Is it illegal to issue tokens?
According to the latest regulations, token issuance financing refers to illegal public financing without approval, in which financing entities raise virtual currencies through illegal sales of tokens.
"Announcement on Preventing Token Issuance Financing Risks"
1. Accurately understand the essential attributes of token issuance financing activities
Token issuance financing refers to the financing entities through which The illegal sale and circulation of tokens and the raising of so-called "virtual currencies" such as Bitcoin and Ethereum from investors are essentially an act of illegal public financing without approval, and are suspected of illegal sales of tokens, illegal issuance of securities and Illegal fund-raising, financial fraud, pyramid schemes and other illegal and criminal activities. Relevant departments will closely monitor relevant developments, strengthen work coordination with judicial departments and local governments, strictly enforce the law in accordance with the current working mechanism, and resolutely control market chaos. If suspected criminal issues are discovered, they will be transferred to judicial authorities.
Tokens or "virtual currencies" used in token issuance financing are not issued by monetary authorities, do not have monetary attributes such as legal solvency and legal enforceability, nor do they have the same legal status as currency, and cannot be The market is used as currency circulation.
2. No organization or individual may illegally engage in token issuance financing activities
According to the announcement, all token issuance financing activities are now required to stop immediately, and organizations that have completed token issuance financing are required Make refund and other arrangements with individuals to protect the rights and interests of investors and properly handle risks. For those who refuse to stop token issuance and financing activities and illegal activities, relevant departments will seriously investigate and deal with them in accordance with the law.
What will happen if we issue tokens domestically?
The issuance of virtual currency may involve non-profit and fund-raising fraud, as well as the risk of pyramid scheme crimes. According to Article 13 of the Judicial Interpretation of Illegal Fund-raising, if you illegally absorb funds through pyramid schemes, it constitutes both a non-abduction crime and the crime of organizing and leading pyramid schemes, and you will be severely punished. Therefore, issuing virtual currencies requires careful consideration of legal risks.
Article 224-1 of the Criminal Law stipulates the crime of organizing and leading pyramid schemes. This crime has two levels of punishment. Generally, the person shall be sentenced to fixed-term imprisonment of less than 5 years, and in serious cases, he shall be sentenced to fixed-term imprisonment of more than 5 years. According to the judicial interpretation of MLM, if there are more than 30 people participating in MLM activities within the organization and the level is above level 3, the organizers and leaders will be held criminally responsible. If there are more than 120 people and more than 2.5 million yuan in total, the situation is serious.
MLM activities can be divided into two categories: 1. Original MLM, which uses the number of goods sold as the basis for remuneration or rebates; 2. Fraudulent MLM, which uses the number of people developed as the basis for remuneration or rebates. The second type of pyramid selling is the activity that is cracked down on by criminal law.
The above is the detailed content of Get the facts: Is it legal to issue a token?. For more information, please follow other related articles on the PHP Chinese website!

Hot AI Tools

Undress AI Tool
Undress images for free

Undresser.AI Undress
AI-powered app for creating realistic nude photos

AI Clothes Remover
Online AI tool for removing clothes from photos.

Clothoff.io
AI clothes remover

Video Face Swap
Swap faces in any video effortlessly with our completely free AI face swap tool!

Hot Article

Hot Tools

Notepad++7.3.1
Easy-to-use and free code editor

SublimeText3 Chinese version
Chinese version, very easy to use

Zend Studio 13.0.1
Powerful PHP integrated development environment

Dreamweaver CS6
Visual web development tools

SublimeText3 Mac version
God-level code editing software (SublimeText3)

Ouyi APP is a professional digital asset service platform dedicated to providing global users with a safe, stable and efficient trading experience. This article will introduce in detail the download method and core functions of its official version v6.129.0 to help users get started quickly. This version has been fully upgraded in terms of user experience, transaction performance and security, aiming to meet the diverse needs of users at different levels, allowing users to easily manage and trade their digital assets.

1. Ordinary users can purchase Ethereum through mainstream digital asset trading platforms such as Binance, Ouyi OK, HTX Huobi. The process includes registering an account, identity authentication, binding payment methods and trading through market or limit orders. The assets can be stored on the platform or transferred to personal money sacrificials; 2. Ethereum has no fixed issuance limit, with about 72 million initial issuance, and it is continuously issued through the PoS mechanism and the destruction mechanism is introduced due to EIP-1559, which may achieve deflation; 3. Before investing, you need to understand the risk of high volatility, enable two-factor verification to ensure account security, and learn asset custody methods such as hardware or software money sacrificials; 4. Ethereum is the core platform of decentralized applications, DeFi protocols and NFT ecosystems, supporting the operation of smart contracts and promoting digital asset rights confirmation and flow

The price fluctuations of ETH have touched the hearts of countless investors, and discussions about whether its prices will bottom out again have never stopped. This article will review the price trends of Ethereum in recent years, and combine current market fundamentals and technical indicators to explore whether it is possible to pull back to the key support level of US$2,000, providing readers with a multi-dimensional market observation perspective.

Table of Contents: August Binance (Binance) Exchange Discounts: August Bybit Exchange Discounts: August MEXC Matcha Exchange Discounts: August Bitfinex (Green Leaf) Exchange Discounts: Cryptocurrency Exchange Ranking This article will compile the latest offers from major cryptocurrency exchanges in August 2025, and one article allows readers to enjoy the best benefits. What many newbies in the currency circle don’t know is that most exchanges have hidden application offers, which include: fee reduction (10-20% reduction) new account bonus (can serve as margin, use

First, choose a reputable digital asset platform. 1. Recommend mainstream platforms such as Binance, Ouyi, Huobi, Damen Exchange; 2. Visit the official website and click "Register", use your email or mobile phone number and set a high-strength password; 3. Complete email or mobile phone verification code verification; 4. After logging in, perform identity verification (KYC), submit identity proof documents and complete facial recognition; 5. Enable two-factor identity verification (2FA), set an independent fund password, and regularly check the login record to ensure the security of the account, and finally successfully open and manage the USDT virtual currency account.

The Genius Act strengthens the linkage between stablecoins and US dollar and US bonds by establishing a federal regulatory framework and requiring stablecoins to hold US dollars or US bonds 1:1 as reserves; 1. The bill clearly defines payment stablecoins and implements AML/KYC supervision; 2. The issuance of stablecoins will increase the demand for short-term US bonds, which may significantly affect the US bond market and yield; 3. The development of stablecoins not only improves cross-border payment efficiency, but also brings systemic risks and challenges to the traditional banking system, which may change the global financial landscape.

Binance APP is a world-leading digital asset service application, providing users with safe and convenient trading experience and comprehensive market information. Through its official mobile client, users can grasp the latest market trends, manage personal digital assets, and conduct diversified trading operations anytime and anywhere. This article will introduce in detail how to obtain and install the Binance APP through official channels, as well as its core functions and usage techniques, to help users use the platform safely and efficiently.

Through its Turing-complete smart contracts, EVM virtual machines and Gas mechanisms, Ethereum has built a programmable blockchain platform beyond Bitcoin, supporting diversified application ecosystems such as DeFi and NFT; its core advantages include a rich DApp ecosystem, strong programmability, active developer community and cross-chain interoperability; it is currently implementing consensus transformation from PoW to PoS through the upgrade of Ethereum 2.0, introducing beacon chains, verifier mechanisms and punishment systems to improve energy efficiency, security and decentralization; in the future, it will rely on sharding technology to realize data sharding and parallel processing, greatly improving throughput; at the same time, Rollup technology has been widely used as a Layer 2 solution, Optimistic Rollup and ZK-Rollu