THELOGICALINDIAN - The Hong Kong Securities and Futures Commission SFC will no best let its citizens advance in STOsunless they accept at atomic 1 million
STOs for ‘Professional Investors’ Only in Hong Kong
In what they alarm a move to assure investors, Hong Kong’s banking babysitter antiseptic its position on STOs yesterday. The Hong Kong Securities and Futures Commission (SFC) reminded investors that agenda assets are still awful risky. This agency they should be in the branch of ‘professional investors’ only.
To be clear, it doesn’t amount if adeptness investors accept fabricated the appropriate alarm on the bazaar or acicular their trading skills. If they don’t accept a portfolio of at atomic $1 actor (HK $8 million), STOs are off the table for them.
The advertisement comes afterwards the SFC launched its authoritative head for cryptocurrency companies in November 2018. In a statement on Thursday, the SFC said that aegis tokens abatement into the aforementioned class as securities, which meant that they were accountable to the aforementioned absolute laws.
Foreign Entities Can No Longer Freely Target Hong Kong Investors
The latest crackdown on STOs, which accept become a adjustable backup to ICOs in aloof about every bend of the world, is not bound to companies based in the region. According to the SFC statement, anyone business or distributing aegis tokens targeting Hong Kong investors charge access a bounded license.
Moreover, agenda asset providers charge accede with three key requirements laid out by the SFC. They charge bind their offerings to able investors only. They charge accommodate bright and absolute advance admonition and guidelines, and charge animate investors to backpack out their own due diligence.
If they abort to do this, they will either lose their authorization or activate “disciplinary action” from the banking watchdog. According to the statement:
SFC: Not an Outright Ban But Almost as Bad
ICOs are all but dead. This time aftermost year, ICOs aloft $1.74 billion. This year the amount is bearly authoritative the blueprint at aloof $46 million.
STOs accept emerged as a added defended and adapted way to advance in cryptocurrency companies. Unlike ICOs, they buck best of the hallmarks of IPOs, depending on the jurisdiction.
However, alike in the United States, with its 70-year-old rules, not all STOs are aloof for the cool wealthy. Hong Kong may not be absolute banning STOs like acreage China. But they’re affective a footfall added to beheading addition here–and abrogation retail investors at the gates.
Should and will STOs be aloof for affluent investors? Share your thoughts below!
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