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Hong Kongâs Securities and Futures Commission (SFC) has halted Black Cell Technology Limited from issuing its initial coin offering (ICO) in Hong Kong. Black Cell has agreed to distribute refunds to Hong Kong-based investors.
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Black Cell ICO Halted in Hong Kong
Hong Kongâs SFC has ordered Black Cell to cease offering its ICO to investors based in the autonomous Chinese territory. The SFC has expressed âconcerns that Black Cell had engaged in potential unauthorized promotional activities and unlicensed regulated activities.â
The SFC states that Black Cell has âagreed to unwind ICO transactions for Hong Kong investors by returning the relevant tokensâ contributed by investors. In order to address the regulatorâs concerns, the SFC states that âBlack Cell has also undertaken not to devise, set up or market any scheme that constitutes a Collective Investment Scheme (CIS) unless in compliance with the [âŠ] Securities and Futures Ordinance.â
The SFC reminded âParties engaging in ICO activities [âŠ] to seek legal advice [âŠ] about the applicable legal and regulatory requirements,â warning that âWhere an ICO involves an offer to the Hong Kong public to acquire an interest or participate in a CIS, prior authorization or licensing requirements under the SFO may be triggered unless an exemption applies. An interest in a CIS is regarded as âsecuritiesâ.â
Black Cell Subject of Regulatory Action From Philippine Authorities in January
Two months ago, the Philippines Securities and Exchange Commission (SEC) filed a cease-and-desist order again four companies and Filipino resident Joseph H. Calata for operating Black Cellâs ICO.
The order notes that âThe same Joseph H. Calata was permanently disqualified by the Philippine Stock Exchange from being a Director or Officer of any listed companyâ as âHe is the Chairman, President, and CEO of Calata Corporation, which was delisted from the Philippine Stock Exchange for non-disclosure of material information.â
The Philippine SEC stated that âthere is substantial evidence that [Black Cell] are selling or offering securities in the form of KROPS Tokens and/or Kropcoins to the public, in the Philippines, without the necessary license from the Commission.â
Do you think that Black Cell will be able to continue operating in spite of increasing regulatory action? Share your thoughts in the comments section below!
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