Hong Kong-based cryptocurrency exchange Gatecoin has announced that it is awaiting the results of a regulatory compliance review on the legal status of specific tokens listed on its platform following recent statement issued by the country’s securities regulator.
Last month, the Securities and Futures Commission (SFC) issued a guidance on how digital tokens, issued via ICO, may fall under the definition of securities.
The pending review will determine whether a listed token fits the category of a “security” under the Hong Kong Securities and Futures Ordinance, and if so whether the token founders have taken steps to structure their token in accordance with the SFC’s framework.
“Tokens deemed likely to be categorized as securities will be delisted from Gatecoin. Once we have confirmed which of these tokens are to be delisted, clients will have one week to trade their tokens for bitcoin (BTC) or ether (ETH),” Gatecoin said.
“After this period, both trading and deposits of that token will no longer be available through our exchange. However, Gatecoin will still be able to store the delisted tokens in our wallets on behalf of clients that maintain balances after trading and deposits have been disabled.”
Clients holding balances in these delisted tokens will get a one-month period to withdraw these funds from their Gatecoin accounts.
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