ICO

Hong Kong Regulator Halts ICO sale

This post is also available in: ko

Hong Kong’s Securities and Futures Commission (SFC) has halted Black Cell Technology Limited from issuing its initial coin offering (ICO) in Hong Kong. Black Cell has agreed to distribute refunds to Hong Kong-based investors.

Black Cell ICO Halted in Hong KongHong

Kong’s SFC has ordered Black Cell to cease offering its ICO to investors based in the autonomous Chinese territory. The SFC has expressed “concerns that Black Cell had engaged in potential unauthorized promotional activities and unlicensed regulated activities.”

The SFC states that Black Cell has “agreed to unwind ICO transactions for Hong Kong investors by returning the relevant tokens” contributed by investors. In order to address the regulator’s concerns, the SFC states that “Black Cell has also undertaken not to devise, set up or market any scheme that constitutes a Collective Investment Scheme (CIS) unless in compliance with the Securities and Futures Ordinance.”
The SFC reminded “Parties engaging in ICO activities to seek legal advice about the applicable legal and regulatory requirements,” warning that “Where an ICO involves an offer to the Hong Kong public to acquire an interest or participate in a CIS, prior authorization or licensing requirements under the SFO may be triggered unless an exemption applies. An interest in a CIS is regarded as ‘securities’.”

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