ICO News

Hong Kong Securities Group Eyes ICO Portal to Boost Crypto Industry – Crypto Times

The Hong Kong Securities & Futures Professionals Association has proposed a bold proposal to establish an Initial Coin Offering (ICO) portal. This initiative aims to rejuvenate Hong Kong’s position as a leader in the cryptocurrency and blockchain sectors. Once a bustling center for ICOs, the city experienced a downturn due to stringent regulatory measures.

ICOs, which gained popularity following the launch of Ethereum, were instrumental in funding numerous early-stage Web3 protocols. Despite the challenges and controversies during 2017-2018, where many ICOs were labeled scams, they have been lucrative for various long-term investors.

Tackling Regulatory Hurdles

The major obstacle facing ICOs has been their compliance with securities laws. Under existing legal frameworks, many of these offerings were considered violations of these regulations. This led to declining ICO activities within Hong Kong as regulators enforced strict policies. The alternative, Security Token Offerings (STOs), compliant with legal standards, did not resonate as much with Asian investors, resulting in minimal trading volumes on many STO platforms.

The proposed ICO portal by the Hong Kong Securities & Futures Professionals Association signifies a crucial step towards a regulated yet vibrant ICO ecosystem. This development promises new avenues for investors and project creators and ensures adherence to legal norms. The proposal, if implemented, could re-establish Hong Kong as a key player in the global digital asset arena, balancing the need for innovation with the necessity for investor protection.

Also Read: Hong Kong Authorities Investigate Hounax in Alleged $15.4 Million Scam


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