CLIENT ALERT IN APRIL 2019
RE: SFC STATEMENT ON SECURITY TOKEN OFFERINGS
The Securities and Futures Commission of Hong Kong (the “SFC”) issued a Statement on Security Token Offerings on 28 March 20191 (the “Statement”) in relation to the legal and regulatory requirements applicable to parties engaging in security token offerings (“STOs”), which involve Security Tokens and are typically structured to have features of traditional securities offerings. This Statement is particularly interesting and timely as it confirms SFC’s approach towards STOs when STOs are currently attracting a great deal of interests in the market in Hong Kong and other jurisdictions in Asia.
Nature of Security Tokens. “Security Tokens”, as observed by the SFC, are normally digital representations of ownership of assets (e.g. gold or real estate) or economic rights (e.g. a share of profits or revenue) utilizing blockchain technology.2 The SFC considers that Security Tokens are likely to be “securities”3 Read Full Story : Crypto Daily™