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Bitcoin Rises; Hong Kong Regulators Say IPOs by Crypto Business Are “Premature”

Published 20/12/2018, 03:35 pm
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Investing.com - Bitcoin was trading slightly higher on Thursday in Asia. Reports that Hong Kong regulators said IPOs by cryptocurrency-related businesses are premature received some attention.

Bitcoin inched up 0.8% to $3,743.0 and Ethereum climbed 0.3% to $101.48 at 12:20 AM ET (05:20 GMT).

XRP fell 2.7% to $0.35371, while Litecoin lost 2.3% to $29.301.

Citing two sources familiar with the matter, the South China Morning Post (SCMP) reported on Wednesday that Hong Kong regulators seemed to have signalled their reluctance to approve IPOs by crypto trading platform or any business associated with the industry before proper regulatory framework is in place.

The news came as Bitman Technologies, the world’s largest maker of cryptocurrency mining computers, submitted a US$3 billion IPO application to list in Hong Kong.

The application lapses on March 26, 2019 if the company fails to hear back from the Listing Committee, the SCMP said.

Founded in 2013, Bitmain is the largest assembler of the computers used for mining cryptocurrencies, and operator of mining collectives.

The company’s first-half net income surged almost 900% to US$742.7 million from a year earlier, while its revenue jumped almost 1000% to US$2.8 billion, according to the company’s IPO filing.

Earlier this year, the Hong Kong Securities and Futures Commission created a “sandbox” that allows crypto trading platforms to operate as licensed entities.

Citing the sources, the SCMP said it would be premature for any company to issue an IPO before the sandbox ends, as the regulatory framework are subject to changes.

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