Hong Kong's Securities and Futures Commission demanded a halt to an initial coin offering, the first time that the regulator stopped this type of fund raising.
The initial coin offering (ICO) of Black Cell Technology constitutes unauthorized promotional activities and unlicensed regulated activities, the Hong Kong securities regulator said in a statement on its website.
Black Cell Technology's guarantee that digital token investors would be eligible to redeem equity shares via sales conducted through its website constitute a breach of collective investment scheme regulations, according to the Securities and Futures Commission (SFC).
The SFC has frequently urged investors to be mindful of potential scams as well as the investment risks involved in initial coin offerings.
