Updated Guidance by FTAHK October 31, 2018, Includes Security Token OfferingsOctober 31, 2018
FTAHK has released an updated version about the guidance of token sales. FTAHK is the FinTech Association of Hong Kong that was released on Wednesday, October 31, 2018.
The growth of digital asset market along with regulatory scrutiny has taken in to account the details of the security tokens and the regulations required for the offerings in a way to protect investor interest.
The updated document that provides with a guide about the security token, now makes references to security tokens, as a relatively new type of blockchain-based digital unit, which is backed by real-world assets.
The guidance was launched by FTAHK originally in December 2017. The document consisted of the best practices to be followed when it comes to token sales. Most of the token sales were organized as ICOs during that point in time. The latest version that has been released today Wednesday, October 31, 2018, is the revised version, and it talks about token related events like Security Token Offerings (STOs)
There are changes made in the sections that we’re talking about Know-Your-Customer (KYC) and the related governance standards.
The planning of the token sales through clear steps are being suggested with clear information and step by step procedures.
Henri Arslanian, the Chairman of FTAHK, stated, “The pace at which the crypto space is changing is very fast in a way that it makes the adoption of specific regulations pretty difficult. This is one reason for why setting out the best practices is the very effective way for the crypto ecosystem to grow to establish itself as institutional.”
While it is a reality that a lot of investors have lost their confidence with respect to ICOs, despite these projects are continuing to be a very attractive method of raising funds. The guidance after its updates gives a very clear reflection of the goals of FTAHK to ensure a professional environment in the digital asset industry.
Even in NYC, people are becoming increasingly interested in the security tokens offered by Leaseum partners for real estate assets.
Urszula McCormack is one of the authors, and the co-chair in the Policy and Advocacy Committee stated, “The process of tokenization unlocks, captures, and transfers the value of crypto and assets in very important ways for both the traditional and new market infrastructures. It further empowers a smart contract design. In use cases, the risks and opportunities are consistently evolving, and this is why the best practices are required to be up-to-date and relevant.”
The members of FTAHK are from “PwC, Société Générale, EY, and WeLab.” The FTAHK is a non-profit organization, which represents the Fintech sector of Hong Kong.
Carlson Tong Ka-shing, the chairman of Hong Kong’s Securities and Futures Commission, stated that they do not have any intentions to ban crypto trading like China.