Octo3 Pushes Forward ICO Despite Hong Kong’s Warning

Octo3 Pushes Forward ICO Despite Hong Kong’s Warning

Despite the recent warnings given by the regulatory body of Hong Kong, the Hong Kong Securities and Futures Commission, Octo3 has announced that it wi

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Despite the recent warnings given by the regulatory body of Hong Kong, the Hong Kong Securities and Futures Commission, Octo3 has announced that it will go ahead with its Initial Coin Offering or ICO. Octo3 is a start-up company that sells a variety of financial technologies. The ICO is being launched from October 3 to October 31 as a fundraising initiative to fund the transfer of their international payment processing network to a blockchain based platform.

Chairman of Octo3, Ajmal Samuel, told CNBC that as the payment methods used by merchants and customers are not the same, it leads to difficulty in processing the payments. The merchants may accept only certain payment methods while the customers may not be able to use those specific payment methods. Once the blockchain technology is implemented this difficulty will be removed as third parties and middlemen can be eliminated from the network. Blockchain technology will help decentralize the network, thus making the process of payments easier for customers.
On September 4, the Peoples Bank of China banned ICOs. This decision had a major impact throughout the cryptocurrency market. The Peoples Bank of China considers fundraising through ICOs to be illegal. Following the ban by China, many other countries have also warned their citizens of the dangers on ICOs. Close on the heels of China’s announcement, Hong Kong’s Securities and Futures Commission (SFC) on September 6 announced that it had observed an increase in fundraising through ICOs in Hong Kong. Julia Leung, the executive director of intermediaries in SFC also stated her concerns. She further added that the features and terms of some ICOs could imply that they are securities. SFC stated that irrespective of the location of the company, they need to be licensed or registered with the SFC to offer ICOs in Hong Kong. This adds means more regulations on ICOs in Hong Kong.
But Octo3 chairman, Mr. Samuel considers these regulations to be a blessing as he feels that the unregulated ICO market till now has lead to some inappropriate practices which can be controlled by the regulations. CEO of Octo3, Tyrone Lynch, said that as they are fully in compliance with the SFC regulations and they were neither a security nor an investment scheme, they will be going ahead with the ICO. He considers the ICO of Octo3 to be a good example of what an ICO should be. The ICO is also crucial to the company as the shift to blockchain technology can’t take place without a good performance from the ICO. He also said that as they are in full compliance with SFC regulations, they are not worried about intervention from the government during the sale of the tokens.

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