The Hong Kong Securities and Futures Association also suggested that Hong Kong’s authorities could implement Islamic Banking.
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The suggestion that Hong Kong could make an “Initial Coin Offering” (ICO) appeared in a list of propositions formulated by the Hong Kong Securities and Futures Association to revitalize Hong Kong’s economy.
The document, signed by association president Chen Zhihua, was published on Nov. 29 and included various measures, ranging from routine to bold.
The suggestions include the legal recognition of Islamic finance, and inviting stakeholders from the Islamic world to set up a committee to formulate “Islamic finance guidelines with Hong Kong characteristics.” The tenth point of the list contains only the following line without any details:
“Consider launching an initial coin offering (ICO) mechanism.”
As there is no further explanation, it is unclear whether the association is suggesting the crafting of a comprehensive framework for ICOs or creating an authorized platform.
The era of ICOs is widely seen as having ended in 2020 due to regulatory pressure and the entrance of institutional investors into the crypto market. The capitalization of ICOs plummeted 95% from its boom year in 2018 to 2019.
Related: The Death of the ICO. Has the US SEC Closed the Global Window on New Tokens?
Cointelegraph sent a press request to the Hong Kong Securities and Futures Association for details on the initiative.
Meanwhile, the Hong Kong administration is busy setting in place crypto regulation. In November, it laid down the business requirements for offering tokenized securities and other investment products. Providers are expected to take full responsibility for their tokenized products, ensure effective record-keeping, and demonstrate operational soundness, among other factors.
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