SFC took a major step recently and it decided to stop the initial coin offering of Black Cell Technology in Hong Kong. The reason SFC has taken this measure is that the commission believes that the company indulged in promotional activities which were unauthorized.
Black Cell Technology has decided to surrender to SFC’s decision and is willing to refund the Hong Kong based investors. The company is all set to return the tokens to the investors. SFC has also got regulation concerns against Black Cell Technology.
However, the company has now undertaken that it will not setup any scheme that does not comply with the Securities and Future Ordinance. Since, this case surfaced up SFC has also emphasized the fact that companies that are eager to indulge in ICO activities need to seek legal advice first.
This way the companies will get the adequate knowledge about the regulatory requirements. Apparently, this is a lesson for all the companies out there that are interested in initiating an initial coin offering.
The lesson learnt is that the companies need to play it safe and work upon exploring the regulatory requirements so that their ICO promotional activities are not affected in an adverse way.
It seems that the SFC will strongly be monitoring the ICO activities. However, if the companies stick to the regulatory requirement, then in that case managing the ICO activities should not be a problem.
Well, now that SFC is strict about the regulatory requirements, this will help to cut down on the fraudulent activities. The reason is that the licensing condition imposed by SFC will require the identification of the entire team before the commencement of the ICO.
Secondly, if a company gets licensed and decides to go ahead with the ICO, then it will surely be able to get more investors because they will feel more secure about their investment. ICO’s that are monitored by the local commission or Government are bound to get more success.
Apparently, it seems that things will now become more challenging for companies that are eager to go for ICO in Hong Kong but in the long run this action will pave way for better investment opportunities.
This is why all the companies should avoid the chances of losses by fulfilling the commission imposed conditions related to ICO. This way the companies do stand a chance of gaining profits also so this effort is surely worth it.