The suggestion that Hong Kong might make an “Preliminary Coin Providing” (ICO) appeared in a listing of propositions formulated by the Hong Kong Securities and Futures Affiliation to revitalize Hong Kong’s economic system.
The doc, signed by affiliation president Chen Zhihua, was published on Nov. 29 and included numerous measures, starting from routine to daring.
The options embody the authorized recognition of Islamic finance, and welcoming stakeholders from the Islamic world to arrange a committee to formulate “Islamic finance tips with Hong Kong traits.” The tenth level of the record comprises solely the next line with none particulars:
“Take into account launching an preliminary coin providing (ICO) mechanism.”
As there isn’t any additional clarification, it’s unclear whether or not the affiliation is suggesting the crafting of a complete framework for ICOs or creating a licensed platform.
The era of ICOs is widely seen as having ended in 2020 resulting from 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.
Cointelegraph despatched a press request to the Hong Kong Securities and Futures Affiliation for particulars on the initiative.
In the meantime, the Hong Kong administration is busy setting in place crypto regulation. In November, it laid down the enterprise necessities for offering tokenized securities and different funding merchandise. Suppliers are anticipated to take full duty for his or her tokenized merchandise, guarantee efficient record-keeping, and exhibit operational soundness, amongst different components.