BlackCell Technology to SHUT DOWN its Initial Coin Offering(ICO)
Mar 20, 2018 Posted / 3468 Views
The SFC of Hong Kong which regulates the country’s security has stepped up to shut down an initial coin offering(ICO) stating it to be a potential illegitimate promotional and felonious regulated activities. Black Cell Technology received a legal notice regarding the shutting down of their ICO, they had agreed with it and halted their ICO by ceasing their sales and investors have been assured that their cryptocurrency will be returned back soon.
The main business idea of this ICO was to use investors funds to develop an app and in exchange for this, they will be given equity shares. The classification of this token is under security by the regulatory authority. Hong Kong had never intervened before to shut down any ICO but it’s the first time they are doing so.
The body officially stated that “Black Cell Technology ICO has an unlicensed regulatory activity with collective investment schemes required to register and comply with official regulations”.
They were developing an app called as Krops. It is supposed to be a mobile-based food marketplace to simplify the needs of both farmers and shoppers. It's basically unclear, “how the project will proceed further?”. Previously launched ICO strictly restricted their access to investors from country’s malevolent to the business model. Some projects citing ICOs have received decree because of which the possible upcoming ICO are keen to stay out of it to protect themselves from any potential investigation.
It was targeted because of its token specifically attributed a return for a token which is definitely referencing security for token holders. Other projects also exist that are ambiguous in their approach are avoided any intervention from regulatory bodies but with its intervention on Black Cell Technology, time is near when their freedom will be snatched.
The quick regulations have indeed taken everyone by surprise. Although it's not the first attempt to stop cryptocurrency frauds. Last month the regulatory bodies issues subpoenas to currency trading companies do not involve themselves in any tokens that can be seen as a security. The SFC of Hong Kong has possibly sent enough warnings.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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