The Hong Kong Securities and Futures Professional Association recommends the country could conduct an initial coin offering (ICO) to stimulate the local economy.
Printed on November 29 and bearing the signature of association president Chen Zhihua, the document contained a variety of measures ranging from routine to audacious.
The recommendations encompass the official acknowledgment of Islamic finance and the establishment of a committee comprised of Islamic world stakeholders tasked with developing “Hong Kong-specific Islamic finance guidelines.” The 10th point of the enumeration comprises a solitary line devoid of any additional information:
“Consider launching an initial coin offering (ICO) mechanism.”
Without additional clarification, it is ambiguous whether the association recommends developing an authorized platform or a comprehensive framework for initial coin offerings (ICOs).
In 2020, regulatory pressure and the entry of institutional investors into the cryptocurrency market were widely believed to end the era of initial coin offerings (ICOs). The market capitalization of initial coin offerings (ICOs) experienced a significant decline of 95% between 2018 and 2019.
In the interim, Hong Kong authorities are hard at work establishing crypto regulations. The regulatory body responsible for regional securities launched the operational criteria for tokenized securities and other investment products in November.
Providers are required, among other things, to assume complete accountability for their tokenized products, maintain accurate records, and exhibit operational integrity.
