Hong Kong Securities Commission considers many ICOs to be fraudulent
The Hong Kong securities regulator looks with skepticism on investments in initial coin offerings (ICO).
In Friday’s speech on the functioning of the investment industry, Deputy Chairman of the Hong Kong Securities and Futures Commission (SFC) Julia Leung warned the public again about dangers associated with financing blockchain projects.
“We recognize that innovative technologies like blockchain can improve efficiency and financial inclusion, but this does not give everyone the right to organize attraction funds, violating securities laws, ”Leung said.
“Things get complicated themes, that many of these ICOs doubtful or even are frank fraud. Issuers avoid police and securities regulatory oversight by his transboundary nature and to that, what crypto-assets structured so as not to fall under perimeter of regulatory bodies “, – added Leung.
This speech was delivered a few weeks later. after Togo, like SFC banned An ICO project that she believed offered unregistered securities in Hong Kong. Besides Togo, earlier The SFC ordered several exchanges remove from listing ICO tokens, which the department regarded as securities.
Leung linked the popularity of such investments to the gambling mindset: “Many young people who buy digital tokens in time ICOs, understand that these tokens have no actual value, but they are betting on the rapid growth of the secondary market“.