Hong Kong Securities and Futures Commission (SFC) has recently taken a huge step regarding the Initial Coin Offering (ICO). The SFC has halted the black cell Technology limited from issuing the Initial Coin Offering (ICO) in Hong Kong. The SFC of Hong Kong has ordered Black Cell to cease offering its ICO to investors which are based in the autonomous Chinese Territory. The SFC has also expressed its concern regarding the engagement of Black Cell in the potential unauthorized promotional activities and unlicensed regulated activities.
The SFC has also generated a statement that the Black Cell has agreed to the order and is ready to unwind the ICO transactions for Hong Kong investors by returning the relevant tokens which were contributed by the investors earlier. In the statement, the SFC has also said that the Black Cell has also undertaken of not devising or setting up or market any scheme that consists any kind of Collective Investment Scheme (CIS).
The SFC also advised the parties which are engaged in ICO activities should seek the legal advice about the applicable legal and regulatory requirements. This advice has been generated along with a warning that when an ICO is involving any offer to the Hong Kong public in order to acquire any interest or participate in a CIS, some prior authorization and licensing requirements must be triggered unless an exemption applies under the SFC.
The Phillipenes Securities and Exchange Commission (SEC) filed a cease and desist order against four companies and Filipino resident Joseph H. Calata for operating Black Cell’s ICO around two months ago. The order noted that the similar Joseph H. Philippine Stock Exchange completely disqualified the Calata from being a Director or Officer of any listed company. The reason behind this order was that he was the Chairman, President and CEO of Catala Corporation and it was delisted from the Phillippine Stock Exchange for the non-disclosure of material information. In return, the Philippine SEC stated that there are several substantial pieces of pieces of evidence stating that Black Cell are selling or offering securities in the form of KROPS tokens and KROPcoins to the public.