Hong Kong Securities Regulator Shuts Down ICO, Makes Company Issue Refunds

The Hong Kong Securities and Futures Commission (SFC) has stopped Black Cell Technology’s Initial Coin Offering (ICO) on the grounds that the offering constituted an unregistered Collective Investment Scheme (CIS), according to a SFC website bulletin posted today, March 19.

Black Cell must now refund Hong Kong investors of their investments in the token, which would support a mobile app call “Krops,” a marketplace for listing agricultural products.

Black Cell promoted its ICO on its website, telling investors that their investments would finance the development of the mobile app and give token holders the rights to equity shares of Black Cell, a practice that the SFC considers a CIS and thus a “security”, thus needing prior registration with the regulator before being sold to investors…

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