Signum Digital, a joint venture of Coinstreet and Somerley, has announced that it has received an 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 ownership of tangible assets, such as private equities, real estate, art and collectibles. By being linked to real-world assets, the tokens may lower risks 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 will manage the STO platform using the brand name “CS-Pro.“ This platform will be 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 upcoming 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 last 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 is applying for a license to operate in Hong Kong, possibly moving headquarters from Singapore to the special administrative region.
Recently, 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 approach from the Chinese crypto ban enforced in 2021.
Title: Signum Digital scores approval to offer security tokens in Hong Kong
Sourced From: cointelegraph.com/news/signum-digital-scores-approval-to-offer-security-tokens-in-hong-kong
Published Date: Fri, 17 Mar 2023 09:12:25 +0000
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