After the previous SFC warning that has highlighted that ICO tokens could be regarded as securities, Hong Kong Launches Cryptocurrency Risks Education campaign.
31 January, AtoZForex – Hong Kong officials have launched a campaign aimed at education of the public about the risks that are associated with cryptocurrency and ICO investment. The campaign has taken off on Monday, while the key organizer of the idea is the government’s Financial Services and the Treasury Bureau (FSTB) and the Investor Education Centre (IEC), which is a subsidiary of the Securities and Futures Commission (SFC).
Hong Kong Launches Cryptocurrency Risks Education campaign
The initiative by authorities is aiming to reach Hong Kong citizens through a number of channels. Some of these include city’s metro system, TV, and social media. In addition, the campaign is appearing as the last government move in offering the public a clear understanding of ICO and cryptocurrency investment.
The authorities have stated that they decided to go with the idea of educating the public due to the increased cryptocurrency market interest growth. Joseph Chan, the undersecretary of the FSTB, has commented:
“Through this series of public education initiatives, the government aims to provide the public with a correct and comprehensive understanding of ICOs and ‘cryptocurrencies’, so that they can thoroughly assess the risks before making transactions or investment decisions.”
Additionally, the IEC has made ICO and cryptocurrency-related resources available to the public via its official website, the Chin Family.
The recent flow of startups that are getting capital from crowdfunding via the initial coin offerings (ICO) continues to attract the attention of the global financial regulators. The initiative also is following the previous SFC warning that has highlighted that ICO tokens could be regarded as securities.
The Hong Kong financial regulator stated that it has noticed that particular ICOs have terms and features that might mean that tokens are ‘securities’. Therefore, the ICO tokens might be subject to the securities laws of Hong Kong.
While ICOs may fall under the definition of securities, the regulators warn potential dealers or advisers of such tokens. Any business in regards to the ICO tokens may constitute a regulated activity. Thus, parties engaging in a regulated activity targeting the Hong Kong residents need to have a license from the SFC. This is irrespective of the location of these parties.
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