Companies (Winding Up and Miscellaneous Provisions) Ordinance

On 5 September 2017, the SFC issued a statement to the effect that under the Securities and Futures Ordinance (Cap 571) cryptoassets may constitute a ‘security’ based on their terms and features, and parties engaging in a ‘regulated activity’ associated with securities must be licensed or registered with the SFC, so long as such activities target the Hong Kong public. ICOs and the secondary trading of cryptoassets on exchanges must similarly comply with registration or authorisation requirements. Registration requirements refer to the prospectus regime for securities such as shares under Parts II and XII of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32) (CWUMPO), while the authorisation requirement under Part IV of the SFO means SFC authorization for collective investment scheme products such as funds.