Regulation of Cryptocurrency and blockchain tokens and initial coin offerings (ICOs)
In Hong Kong and throughout the world, financial technology (FinTech) is transforming traditional financial services. The most promising technology is Blockchain, which is a distributed ledger technology, which provides a new mechanism for recording and verifying information. Blockchain is the technology which underlines the relatively new phenomena of cryptocurrency.
In January 2009, Bitcoin, the first cryptocurrency based on Blockchain technology, was issued. Bitcoin is a digital payment system which facilitates electronic payments without the need for an intermediary, such as a bank, for settlement. In the beginning, Bitcoin was traded by only a few tech enthusiasts. The first purchase of a good with Bitcoin occurred in 2010 when a user transacted 10,000 bitcoins for two pizzas. It has since largely become a speculative commodity. Bitcoin has grown to a market capitalisation of over 70 billion USD, with a circulating supply of over 16 million bitcoins. Over one thousand other cryptocurrencies, known as “altcoins”, have been released since Bitcoin. The second largest cryptocurrency by market capitalisation after Bitcoin, Ethereum, was released in 2015.Read more…
