Regulatory Series on Cryptocurrencies: Hong Kong’s SFC on STOs

Tokenization has been the trendy talk of the town. The Security Tokens resembles the conventional financial instruments, like, shares, debentures or units in a collective investment scheme.

On the back of security tokens being the trending talk of blockchain-driven innovations to conventional financial services, the investors’ safe-guarding in security tokens is quite essential in order to gain more public traction. Hence, the security tokens are identified to be scrutinized by the regulatory perimeter of Hong Kong as their classification meets the definition of “specified investments.”

Hence, Hong Kong’s Securities and Futures Commission (SFC) regulates Security Token Offerings as they are likely to be securities and so subject to the local securities laws.

The Securities and Futures Commission (SFC) strikes a chord about the regulatory requirements pertaining to parties involved in security token offerings (STOs) and alerted investor to be watchful of the potential risks associated with the crypto-assets. 

Hong Kong has been meticulous in being on top of the recent shifts in blockchain innovation.

The Hong Kong-based Fusang Group made announcements recently of the receipt of the approval for a Securities Exchange license from the Labuan International Business and Finance Centre (IBFC), based in Malaysia. The Malaysia exchange is likely to render services into primary listings of public companies dealing with digital assets. The collaboration appears to be the pioneer for fully licensed Asian securities exchange with a prime target on the digital assets. 

Currency Strength Index: FxWirePro's hourly BTC is at 122 (highly bullish), the hourly USD spot index is flashing at 69 levels (bullish) at press time 11:47 GMT.

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