Mr. Joseph Calata faces another hurdle as his Black Cell Technology’s Initial Coin Offering (ICO) for KROPS is ordered to shut down by HK regulators.
KROPS in Hong Kong
After getting denied of its motion to lift the ban on its ICO in the Philippines, Hong Kong Securities Regulator orders a cease and desist to Mr. Calata’s ICO for KROPS.
According to the official Securities and Futures Commission (SFC) bulletin, Black Cell Technology Limited (Black Cell) has launched a Collective Investment Scheme (CIS). Under Hong Kong laws, CIS needs to be preregistered and authorized.
Black Cell has been offering KROP coins to investors who will participate in their ICO. This will fund their mobile app, KROPS, that connects farmers to buyers without the need of middlemen. Investors are then promised equity shares of Black Cell.
And with this decision comes the refunding of Black Cell to its investors.
“Black Cell Technology Limited has agreed to unwind ICO transactions for Hong Kong investors by returning them the relevant tokens following regulatory action by the Securities and Futures Commission over concerns that Black Cell had engaged in potential unauthorized promotional activities and unlicensed regulated activities.” – Securities and Futures Commision (SFC)
Early in 2018, KROPS got the attention of the Securities and Exchange Commission (SEC) in the Philippines. It was later on ordered to stop its sale of tokens in the country because of the same reason – lack of registration and license from SEC.
By March 2018, the people behind KROPS submitted a motion to lift the ban on its ICO but got denied.
- Read more: SEC Denies KROPS Motion to Lift ICO Ban