Due to the fact that China does not stop moving along the path of prohibitions and regulation of the fintech industry, technological projects are confidently moving to the places favorable for their interests, such as Hong Kong and Singapore.
Over the past few months, there has been a record growth in the number of companies that want to launch ICO in the territories of these Asian countries. The majority of these startups were founded in the Celestial Empire. However, since Beijing decided that ICOs were used as a tool for collecting money illegally, startups on blockchain are forced to search for countries where they will have complete freedom for self-development.
At present, ICO is a method that is very popular and in demand, attracting initial capital with the help of developer companies. In such case, this method of collecting money has been closely monitored by regulators in many countries around the world, since it is still does not have clear regulatory requirements and is seen as open to fraudulent activity.
While China imposed a ban on raising funds in the ICO process, such countries as Singapore and Hong Kong managed to become a haven for startups. They managed to provide cryptocurrency companies with convenience when registering ICO projects. On this account, the head of the Association of Cryptocurrency Enterprises and Startups Singapore, Anson Zeall, left a comment, which stated with the following:
“We cannot say Singapore has become an ICO hub yet, as more work needs to be done, but yes, there has been a lot of activity since September last year.”
Overall, it should be noted that Chinese companies are not the only ones who are in a hurry to move to Hong Kong. Although the government of South Korea restricted the regulatory measures that affect the ICO, the country’s blockchain startups seized the initiative and moved their activities to hospitable Hong Kong. In case the tax regulations for cryptocurrency projects are introduced into the regulation of the state, it is possible that the companies of Thailand will follow this example soon.
We would like to note that Hong Kong and Singapore do not have any rules for the collection of funds through the ICO to this day, but have a regulatory framework specifically for capital investment using digital currency.
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