The Hong Kong regulator SFC warns about the risks ICO

The Commission on securities and futures of Hong Kong (SFC) is skeptical about the investment associated with the primary placements of tokens (ICO).

Head of mediation office of the controller Leon Julia (Julia Leung) once again warned the public about the activities of the fundraising associated with this technology.

«Although we recognize that innovative technologies such as the blockchain, have the potential to improve the efficiency of the financial sector, it does not give anyone the right to collect funds, which would be contrary to local securities legislation», she said.

Leon also expressed concern that «under the guise of» innovative technology, many projects ICO not really offering technological innovation, but on the contrary, pose risks for investors.

«Many of the projects ICO dubious or it’s outright fraud. Issuers avoid the attention of the police or securities regulators because of the international character and nature of cryptocurrency,» said she.

The head of the SFC reminded about the recent closure of one of the local projects ICO, in which, according to the regulator, offered unregistered securities. SFC previously checked several exchanges for delisting token-ICO, which also equated to securities.

«Most of those who invest in the ICO understand that tokens have no value, but rely on their fast growth on the secondary market», – summed up Chairman of the SFC.

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