Hong Kong Securities and Futures Association Considers Launching Initial Coin Offering (ICO)

The Proposal

The Hong Kong Securities and Futures Association has included the idea of launching an Initial Coin Offering (ICO) as part of its plan to revive Hong Kong's economy. The proposal, signed by association president Chen Zhihua, was published on Nov. 29 and includes a range of measures.

Unclear Details

While the proposal mentions launching an ICO mechanism, it does not provide any further details. It is unclear whether the association is suggesting the creation of a comprehensive framework for ICOs or the establishment of an authorized platform.

The Decline of ICOs

ICOs were once popular but have faced regulatory pressure and competition from institutional investors. The capitalization of ICOs dropped by 95% from its peak in 2018 to 2019, leading many to believe that the era of ICOs has come to an end.

Seeking More Information

Cointelegraph has reached out to the Hong Kong Securities and Futures Association for more details on their proposed ICO initiative. It remains to be seen if they will provide additional information.

Crypto Regulation in Hong Kong

The Hong Kong administration is currently working on implementing crypto regulations. In November, it established business requirements for tokenized securities and other investment products. Providers will be responsible for their tokenized products, including record-keeping and operational soundness.