Hong Kong financial watchdog issues new STO regulation

Hong Kong financial authorities just issued a new regulation for Securities Token Offering (STO).
Hong Kong financial watchdog issues new STO regulation
A new update is coming from Hong Kong’s financial authorities. The Securities and Futures Commission (SFC) of Hong Kong just issued a guideline related to Securities Token Offering (STO).
According to the new guideline, cryptocurrency has to be tied to a tangible underlying asset, particularly precious metals like gold and immovable properties like real estate.
Security tokens are also considered as securities due to its profit generating nature, as reported by BeinCrypto.
With the new regulation, any parties who wish to offer STOs in the region are required to register and obtain licenses.
Moreover, the new guideline specifies that only professional investors are allowed to invest in STOs, which means that individuals with less than HKD 8 million or around US$ 1,019,000 couldn’t invest to STOs directly.
The above term is followed by a range of implications, such as the extra protection organizations and individual will get from fraudulent investment schemes and the less likelihood of poorly-packaged STO schemes to succeed as the professional investors must perform a proper due diligence before investing.
With a clear and proper regulations, cryptocurrency adoption may just be around the corner for Hong Kong.
Stick with Chepicap to get the recent updates from the crypto space. In the meantime, check out our YouTube channel to find out where Bitcoin will go from the current state.
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