Signum Digital, the 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.
The security token is a new category of virtual assets built on blockchain technology that represents ownership of tangible assets, such as private equities, real estate, art and collectibles. By being linked to real-world assets, they may lower the risk for potential investors, facilitate their research process, 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. In accordance with the upcoming licensing system scheduled to begin in June, the SFC mandated that digital currency exchanges submit applications for licenses 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 a good deal of interest in becoming a crypto hub as it has invested heavily in supporting the potential of technologies like Web3.
In mid-December, Hong Kong launched its first two exchange-traded funds (ETF) for cryptocurrency futures, which raised over $70 million ahead of its debut. The event came soon after the head of Hong Kong’s Securities and Futures Commission announced in October that Hong Kong is willing to distinguish its crypto regulation approach from the Chinese crypto ban enforced in 2021.
Source: https://cointelegraph.com/news/signum-digital-scores-approval-to-offer-security-tokens-in-hong-kong
