Singapore And Hong Kong Are The New Havens For ICOs

China’s ban on ICOs and other cryptocurrency-related activities fueled a negative attitude towards digital currencies in Asia with other countries in the region adopting strict regulations for the market. However, it seems that amidst all that, Singapore and Hong Kong have maintained and open-minded approach towards the crypto market.

Bans on cryptocurrency activities particularly ICOs have forced blockchain startups to seek out alternative regions where they will be allowed to run their fundraising campaigns. Although Hong Kong is an administrative region of China, it is more open to cryptocurrencies than mainland China. It has thus been one of the most attractive places for blockchain startups and the same applies to Singapore.

Analysts have revealed that the past few months have been characterized by an increase in the number of firms that have been launching their ICOs in Hong Kong and Singapore. They believe that this has a lot to do with the exit of many blockchain startups from China following the country’s ban on ICOs. The move was the result of concerns about ICO scams being used to rob people of their hard-earned cash.

Rather than instituting a ban against ICOs and cryptocurrencies, some Asian countries such as Japan have implemented regulations aimed at making sure that there is accountability and that ICOs are legitimate. Anson Zeall, the Chairman of Singapore’s Association of Cryptocurrency Enterprises and Startups stated that the country cannot be classified as an ICO hub just yet. This is because there is still a lot of work to be done although he acknowledged that there has been a lot of ICO activity in Singapore since September 2017.

ICOs have become popular for tech companies especially those in the rapidly developing blockchain industry. This is because they are the easiest way for startups to raise capital while also allowing investors to play a part in exchange for a digital currency that later allows them to enjoy the services offered by the company. In short, ICOs have presented a new way for people to invest in tech companies. However, ICOs have received a lot of criticism all over the world because they are largely unregulated and are thus prone to criminal activity.

Hong Kong, Singapore, and other countries have however been implementing regulations aimed at streamlining ICO processes. The resulting effect is that this has been encouraging ICO growth and thus attracting startups to set up shop in these countries, thus the increasing number of ICOs.