Hong Kong securities association suggests ICO to boost economy

The Hong Kong Securities and Futures Professional Association also suggested that the region’s authorities could implement Islamic Banking.

The suggestion that Hong Kong could make an initial coin offering (ICO) appeared in a list of propositions formulated by the Hong Kong Securities and Futures Professional Association to revitalize Hong Kong’s economy.

The document, signed by association president Chen Zhihua, was published on Nov. 29 and included various measures, from routine to bold.

The suggestions include the legal recognition of Islamic finance and inviting stakeholders from the Islamic world to set up a committee to formulate “Islamic finance guidelines with Hong Kong characteristics.” The 10th point of the list contains only the following line without any details:

“Consider launching an initial coin offering (ICO) mechanism.”

As there is no further explanation, it is unclear whether the association suggests crafting a comprehensive framework for ICOs or creating an authorized platform. 

The era of ICOs is widely seen as ending in 2020 due to regulatory pressure and the entrance of institutional investors into the crypto market. The capitalization of ICOs plummeted 95% from its boom year in 2018 to 2019.

Related: The Death of the ICO. Has the US SEC Closed the Global Window on New Tokens?

Cointelegraph contacted the Hong Kong Securities and Futures Association for comments on the initiative.

Meanwhile, Hong Kong authorities are busy setting in place crypto regulations. In November, the local securities regulator laid down the business requirements for offering tokenized securities and other investment products. Providers are expected to take full responsibility for their tokenized products, ensure effective record-keeping and demonstrate operational soundness, among other requirements.

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