ICO is an alternative fundraising avenue that leverages distributed ledger technology including blockchain. It involves the issuance of digital tokens by an issuer who wishes to raise funds for a project or venture.
The second consultation paper on property crowdfunding framework follows on from Budget 2019, which identified crowdfunding platforms as an avenue to provide an alternative funding source for first-time homebuyers while providing investors access to a new asset class.
The SC is seeking public feedback on the proposed regulatory framework which will, among others, set the eligibility requirements of first-time homebuyers, criteria of properties which can be listed on the platform, obligations of platform operators and financing limits.
For more information, please visit Securities Commission’s website.