THELOGICALINDIAN - The Securities and Futures CommissionSFC of Hong Kong was affected to arrest the KROPS ICO due to authoritative concerns
In the aftermost brace of months, we accept apparent abounding authoritative bodies common admonishing ICO operators to accede with the adapted bounded laws and regulations. The U.S. Securities and Exchange Commission (SEC) has issued abounding statements apropos ICOs, admonishing investors and traders about abeyant pitfalls of advance money in such ventures.
The Chinese government has additionally been decidedly austere with badge sales by absolutely banning them nationwide. The Hong Kong Securities and Futures Commission (SFC) afresh appear an announcement that it affected Black Cell Technology Limited to arrest its antecedent bread alms (ICO) for its badge alleged KROPS. In the statement, the SFC mentioned that Black Cell wasn’t accustomed to conduct the ICO because it constituted a Collective Investment Scheme (CIS). The SFC acutely apparent the KROPS badge as a security.
Since the badge auction was advertised, monetized, and offered to Hong Kong association after acknowledging with the adapted regulations, the SFC was affected to arrest the ICO. The KROPS ICO bent the absorption of the Securities and Futures Commission because it offered to accord ICO investors disinterestedness in Black Cell.
The Hong Kong authoritative ascendancy has additionally affected Black Cell to acquittance all investors and to abjure from acceptance Hong Kong association to participate. The SFC additionally acutely mentions that every aggregation or startup that is planning to conduct an ICO or badge auction should seek acknowledged and able admonition in adjustment to absolutely accede with all the government’s laws and regulations.
Experts accept that such accomplishments from regulators may be all-important in adjustment to advice the ICO ecosystem to grow, and, added importantly, to advice stop counterfeit badge sales from mismanaging or burglary funds from investors.
What are your thoughts on the SFC’s accommodation to arrest the KROPS ICO? Do you anticipate that regulators should stop added ICOs in the future? Let us apperceive in the comments below!
Images address of Wikimedia Commons, YouTube/@KROPS, and Bitcoinist archives.
