First HK-led token sale tests local laws

Author: Brian Yap | Published: 3 Jul 2017

Hong Kong-based Open ANX Foundation’s first-of-its-kind cryptographic token sale represents a successful test case for rules on currency, remittance, stored value and collective investment schemes in the city-state.

The sale closed on June 22 and Urszula McCormack, partner at King & Wood Mallesons in Hong Kong points out that, while the relevant statutory provisions aren’t new, they have created little precedent. "Every crypto asset needs bespoke analysis [and] most statutory definitions haven’t been fully tested," she said.

A recent history

The token sale originated from Mastercoin, the first ever blockchain token seller in 2013. The first ethereum tokens were distributed in August 2014 and subsequently helped to fund the development of the ethereum platform, which was released in July 2015. This,...