The suggestion that Hong Kong may make an preliminary coin providing (ICO) appeared in an inventory of propositions formulated by the Hong Kong Securities and Futures Professional Association to revitalize Hong Kong’s economy.
The doc, signed by association president Chen Zhihua, was published on Nov. 29 and included varied measures, from routine to daring.
The solutions embody the authorized recognition of Islamic finance and alluring stakeholders from the Islamic world to arrange a committee to formulate “Islamic finance guidelines with Hong Kong characteristics.” The tenth level of the listing incorporates solely the next line with none particulars:
“Consider launching an initial coin offering (ICO) mechanism.”
As there isn’t any additional rationalization, it’s unclear whether or not the association suggests crafting a complete framework for ICOs or creating a licensed platform.
The period of ICOs is widely seen as ending in 2020 due to regulatory strain and the doorway of institutional buyers into the crypto market. The capitalization of ICOs plummeted 95% from its growth yr in 2018 to 2019.
Related: The Death of the ICO. Has the US SEC Closed the Global Window on New Tokens?
Cointelegraph contacted the Hong Kong Securities and Futures Association for feedback on the initiative.
Meanwhile, Hong Kong authorities are busy setting in place crypto rules. In November, the native securities regulator laid down the enterprise necessities for offering tokenized securities and different funding merchandise. Providers are anticipated to take full accountability for his or her tokenized merchandise, guarantee efficient record-keeping and exhibit operational soundness, amongst different necessities.
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