The proposal that Hong Kong could conduct an ‘initial coin offering (ICO)’ appeared in the list of proposals prepared by the Hong Kong Securities and Futures Association to revitalize the Hong Kong economy.
The document, signed by association president Chen Zhihua, was released on November 29 and included a range of measures, from routine to bold.
The proposal includes legally recognizing Islamic finance and inviting stakeholders from the Islamic world to form a committee to prepare ‘Islamic finance guidelines with Hong Kong characteristics.’ Point 10 in the list contains only the following lines without any details:
“Consider launching an ICO (initial coin offering) mechanism.”
With no further explanation, it is unclear whether the association is proposing to establish a comprehensive framework for ICOs or to create an approved platform.
The ICO era is widely believed to have ended in 2020 due to regulatory pressure and the entry of institutional investors into the cryptocurrency market. The market capitalization of ICOs plummeted 95% from the 2018 boom to 2019.
Related: The death of ICOs. Has the US SEC closed the global window for new tokens?
Cointelegraph sent a media request to the Hong Kong Securities and Futures Association for more details on the plan.
Meanwhile, the Hong Kong government is busy preparing cryptocurrency regulations. In November, it set out business requirements for offering tokenized securities and other investment products. Suppliers must take full responsibility for tokenized products, ensure effective record keeping, and, above all, demonstrate operational soundness.
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