By: Isha Das
The Hong Kong Securities and Futures Association, in a bold move, has suggested the introduction of an 'Initial Coin Offering' (ICO) as a means to invigorate the city's economy. This proposal featured in a comprehensise list of measures published by the Association's president, Chen Zhihua, on 29th November.
Among other innovative solutions like the inclusion of Islamic banking, the ICO mechanism stands out due to its potential controversy. The specifics of the ICO suggestion were not outlined within the document, leading to ambiguity over whether it's a call for a broader framework or authorized platform.
It's important to note, the ICO era saw a considerable downturn in 2020, with a 95% drop in capitalization from 2018 to 2019, largely due to regulatory pressures and increased involvement from institutional investors. This downward trend has made ICOs less popular within mainstream adoption. This move by the Hong Kong Securities and Futures Association may signify a shift in this paradigm.
Meanwhile, Hong Kong's administration continues its efforts towards regulating cryptocurrency, stating its requirements for businesses dealing with tokenised securities and other investment products in November.
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