Hong Kong Securities And Futures Association Suggests ICO To Boost Economy

The suggestions include the legal recognition of Islamic finance.
Hong Kong Securities And Futures Association Suggests ICO To Boost Economy

In a daring move, the Hong Kong Securities & Futures Professionals Association has suggested creating an Initial Coin Offering (ICO) gateway. Hong Kong’s standing as a pioneer in the blockchain and cryptocurrency industries is intended to be restored via this project. The city saw a decline as a result of strict regulatory measures, after once being a thriving hub for initial coin offerings.

Funding for many early-stage Web3 protocols was made possible by initial coin offerings, or ICOs, which gained traction after Ethereum’s launch. Many long-term investors have made money from initial coin offerings (ICOs) despite the difficulties and controversy that surrounded them in 2017 and 2018.

Complying with securities regulations has been the main challenge ICOs have faced. Many of these offerings were deemed to be in breach of these laws under the then-current legal frameworks. As a result, Hong Kong’s ICO scene began to decline as authorities imposed stringent regulations. The legal alternative, Security Token Offerings (STOs), did not appeal to Asian investors as much, and as a result, trade volumes on many STO platforms were modest.

An important first step toward a regulated yet active ICO ecosystem is the Hong Kong Securities & Futures Professionals Association’s planned ICO platform. This development guarantees compliance with legal standards and offers new opportunities for investors and project creators. If the plan is put into action, it has the potential to make Hong Kong a major player once again in the global digital asset market by striking a balance between the need for innovation and investor safety.

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