Huo Xuewen, the head of Beijing’s financial office, suggested that Star Xu, the founder of the cryptocurrency exchange OKEx, cut ties with “tokens and exchanges that he has established” completely at a blockhcian conference in Beijing last Saturday.

It was followed by the sudden price drop of OKB, a global utility token issued by OKEx without ICO, from $6.4 to $4 , according to coincodex.

Huo Xuewen is against cryptocurrencies and fraudulent ICO projects acting like traditional Chinese financial regulators, while endorses the blockchain technology. “I fully endorse the idea of building a blockchain without a token or cryptocurrencies, and strongly support trusted blockchain technology . Various cryptocurrencies are not welcome in Beijing.” Huo said.

He emphasized that now is not the time to issue fake cryptocurrencies. The attitude of the capital city towards cryptocurrency is ‘due diligence of the seller and buyer beware’. “ if you engage in any financial activities, you are subjected to laws and regulations.” Huo said.

This is not the first time for Huo to offer a stern warning against cryptocurrency-related activities.

At the Beijing International Financial Expo held on January 26th, 2018, Huo said that Beijing will crack down on virtual currency and blockchain fraud.In his speech, he emphasized:“All blockchain companies must pay attention to risks and risk-control. They must not conjure concepts to deceive consumers. It may work for a while but won’t last. All fintech development based on blockchain must protect the interests of investors and we will not hesitate to crack down ICO fraud.”

Thus, it is not surprising that the capital city’s top financial services official urged the founder of the once Beijing-based crypto exchange to cut off relations with with the exchange he founded and the token he issued. Star Xu also delivered a speech at the same blockchain conference.

It is noteworthy that a $160 million(or RMB 1 billion) blockchain investment fund , dubbed Beijing Blockchain Ecology Investment Fund, was launched with the support of Beijing Municipal Bureau of Financial Work at the conference,too. It aims to become the first government-guided fund in Beijing focusing on blockchain applications without tokens.

The newly-launched blockchian investment fund is looking to invest in blockchain-related education and training, non-financial applications of blockchain, blockchain R&D initiatives, and the blockchain-based endeavour to expedite transformation of traditional enterprises and industries.

OK Blockchain Academy of Engineering is the founding partner of the fund, and Star Xu will be the principal person in charge of the fund. Deng Di, the chairman of the China Blockchain Application Research Institute, will act as the general manager of the fund.