New Regulation on STOs, Hong Kong Embracing Regulation

On 28 March 2019, Hong Kong Securities and Futures Commission (SFC) issued a news announcement titled "Statement on Security Token Offerings". This is a sign that the SFC will embrace regulation and give us clear guidance on STOs. The main point is that "unless an applicable exemption applies, any person who markets and distributes Security Tokens (whether in Hong Kong or targeting Hong Kong investors) is required to be licensed or registered for Type 1 regulated activity (dealing in securities) under the SFO, Securities and Futures Ordinance. It is a criminal offence for any person to engage in regulated activities without a licence unless an exemption applies." 

Cryptocurrency scams are everywhere. Regulation is one of the keys for the healthy development of blockchain and cryptocurrencies. On March 14, 2019, "Proposed Framework for Crypto-Asset Trading Platforms" released by Joint Canadian Securities Administrators/Investment Industry Regulatory Organization of Canada lays out regulations for cryptocurrency exchanges.