HK’s FinTech Association Revises Token Sales Guidance to Include STOs
The FinTech Association of Hong Kong has updated its guidance on token sales with the addition of security token offerings.
The FinTech Association of Hong Kong (FTAHK) released on Wednesday an updated version of its guidance on token sales. Taking into account the fast growth of the digital asset market and heightened regulatory scrutiny, the document now references security tokens, a relatively new type of blockchain-based digital units backed by real-world assets.
The organization first launched the guidance in December 2017, covering best practices in token sales, most of which were conducted in the form on initial coin offerings (ICOs) at that time. The revised version discusses other token-related events, such as security token offerings (STOs) and airdrops. The paper also changed the sections addressing know-your-customer (KYC) and governance standards. There are practical suggestions and information offering clear steps to those planning a token sale.
FTAHK chairman Henri Arslanian was cited as saying:
“The pace of change in the crypto space is so fast that it makes adopting specific regulations very difficult. This is why setting out best practices is the most effective way for the ecosystem to grow and become more institutional.”
Even though investors have lost much of their confidence in ICOs, these projects continue to be an attractive method of fundraising. The updated guidance reflects the goal of the FTAHK to ensure a professional environment within the digital asset industry.
Urszula McCormack, co-author of the paper and co-chair of the Policy & Advocacy Committee, stated:
“Tokenization unlocks, captures and transfers value in important ways for both traditional and new market infrastructures. It also empowers smart contract design. However, use cases, risks and opportunities are constantly evolving – which is why best practices need to be up-to-date and relevant.”
FTAHK is an independent non-profit organization that represents the fintech sector of Hong Kong. It counts among its members PwC, EY, Société Générale, and WeLab.
Earlier this month, Carlson Tong Ka-shing, chairman of Hong Kong’s Securities and Futures Commission, said that the city had no intention to ban crypto trading, as China did.