Hong Kong’s Security and Futures Commission greenlights Signum Digital to offer security tokens in the city after inviting applications for virtual asset trading licenses.
Signum Digital, a joint venture of Coinstreet and Somerley, has declared that it has received approval in principle from the Hong Kong Securities and Futures Commission (SFC) for its security token offering (STO) and subscription platform.
Security tokens are a new category of digital assets built on blockchain technology representing the power of tangible assets, similar to private equities, real estate, art, and collectibles. By being linked to real-world assets, the tokens may lower threats for potential investors, facilitate research processes and provide a foundation for the market value of the investment opportunity.
Signum Digital has claimed that, following the receipt of final authorization from Hong Kong’s SFC, it'll manage the STO platform using the brand name “ CS- Pro. “ This platform will exist as a pioneering development in Hong Kong, according to Signum.
Last month, the Hong Kong SFC released preliminary regulations for virtual asset trading platforms and urged the general public to provide their input. Under the forthcoming licensing system scheduled to begin in June, the SFC mandated that digital currency exchanges submit license applications that would let everyday investors trade specific high-capitalization tokens.
Hong Kong has been proposing new initiatives for the city’s cryptocurrency and digital asset sector since the latter year when it invited firms interested in providing STO services to pitch proposals.
Related: Hong Kong’s losses to crypto scams doubled to $217M last year Report
Cryptocurrency exchange Huobi Global also announced last month that it's applying for a license to operate in Hong Kong, possibly moving headquarters from Singapore to the special administrative region.
Newly, Hong Kong has displayed much interest in becoming a crypto hub, investing heavily in supporting the potential of technologies like Web3.
In mid-December 2022, Hong Kong launched its first two exchange-traded funds for cryptocurrency futures, which raised over $70 million ahead of its debut. The event came soon after the head of Hong Kong’s SFC announced in October that Hong Kong is willing to distinguish its crypto regulation way from the Chinese crypto ban enforced in 2021.
(AMAKA NWAOKOCHA, Cointelegraph, 2023)