The Hong Kong Securities Association claims that initial coin offerings (ICOs) may stimulate the local economy
Another group that has proposed Islamic banking to the Hong Kong government is the Securities and Futures Professional Association.
As part of its plan to reinvigorate the economy, the Hong Kong Securities and Futures Professional Association put the idea of an initial coin offering (ICO) on the table.
The paper, which comprised both commonplace and daring initiatives, was released on November 29 and was signed by the association’s president, Chen Zhihua.
Some of the proposals include making Islamic finance a legitimate type of financing and forming a committee to create “Islamic finance guidelines with Hong Kong characteristics.” Another proposal is to invite Islamic global stakeholders to convene.
It is not obvious from the provided information if the organization is proposing the creation of an approved platform or a thorough framework for initial coin offerings (ICOs).
As institutional investors join the crypto market and regulatory pressure mounts, the ICO period is expected to come to a close in 2020. Between 2018 and 2019, the peak year for ICO capitalization, the market cap fell 95%.
Cointelegraph reached out to the Hong Kong Securities and Futures Association to inquire about their thoughts on the project.
The government of Hong Kong is now occupied with the process of establishing crypto legislation. The local securities regulator established the criteria that businesses must meet in order to provide investment products and tokenized securities in November. Among other things, providers must show that they are operationally sound, maintain good records, and accept full responsibility for their tokenized products.