SFC’s regulatory action halts one Hong Kong ICO
On 19 March 2018, the Securities and Futures Commission (SFC) issued a press release stating that Black Cell Technology Limited (Black Cell) halted its initial coin offering (ICO) to the Hong Kong public as a result of regulatory action by the SFC.
The SFC considered Black Cell’s offering of its digital coins, KROPS, to constitute a Collective Investment Scheme (CIS), since the proceeds of the coin sale would fund the development of a mobile application, and the coins would allow holders to redeem Black Cell’s equity shares. Black Cell’s ICO was promoted through its website, where the digital tokens were sold, and this was accessible by the Hong Kong public. Read more…