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Hong Kong Securities Commission Issues STO Warning

Published 04/01/2019, 04:50 AM
Updated 04/01/2019, 06:21 AM
© Reuters.   Hong Kong Securities Commission Issues STO Warning

Hong Kong’s Securities and Futures Commission (SFC) has released a detailed official statement outlining the laws and regulations which are applicable to security token offerings (STOs) and warning investors to be wary of the risks associated with digital assets.

Published on March 28, the statement sets out the parameters for STOs, which it defines as:

“… specific offerings which are structured to have features of traditional securities offerings, and involve Security Tokens which are digital representations of ownership of assets (eg, gold or real estate) or economic rights (eg, a share of profits or revenue) utilising blockchain technology.”

In accordance with this definition, the statement notes that security tokens are “likely to be "securities" under the Securities and Futures Ordinance (SFO) and ...

This article appeared first on Cryptovest

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