In an effort to revitalize Hong Kong’s financial system, the Hong Kong Securities and Futures Skilled Affiliation has put forth a sequence of proposals, together with the suggestion of launching an preliminary coin providing (ICO). The doc, signed by affiliation president Chen Zhihua and printed on November 29, encompasses a variety of measures, with the concept of exploring ICOs as a possible avenue for financial stimulation.
The precise particulars of the ICO proposal will not be elaborated upon within the doc, leaving room for hypothesis on whether or not the affiliation envisions the creation of a complete regulatory framework for ICOs or the institution of a licensed platform. The anomaly surrounding the suggestion makes it difficult to discern the affiliation’s supposed method to ICO implementation.
The proposal comes at a time when the period of ICOs is perceived to have waned, primarily on account of regulatory pressures and the growing involvement of institutional buyers within the cryptocurrency market. The capitalization of ICOs witnessed a considerable decline of 95% from its peak in 2018 to 2019, marking a major shift within the panorama.
Concurrently, Hong Kong authorities are actively engaged on establishing cryptocurrency rules. In November, the native securities regulator outlined the enterprise necessities for providing tokenized securities and different funding merchandise. Suppliers are anticipated to take full accountability for his or her tokenized merchandise, making certain efficient record-keeping and demonstrating operational soundness, amongst different stipulated necessities.
Because the discussions across the potential revival of ICOs acquire momentum in Hong Kong, the worldwide cryptocurrency group watches carefully to see if this proposal positive aspects traction and the way it aligns with the evolving regulatory panorama within the area.