Signum Digital, a joint venture between Coinstreet and Somerley, has announced that its security token offering (STO) and subscription platform has received preliminary approval from the Hong Kong Securities and Futures Commission (SFC).
Security tokens are a novel class of digital assets based on blockchain technology representing ownership of tangible assets such as private stocks, real estate, art, etc. By being linked to real-world assets, the tokens may reduce risks for prospective investors, facilitate research, and provide a basis for the market value of the investment opportunity.
Signum Digital asserts that, upon receiving ultimate approval from the SFC of Hong Kong, it will administer the STO platform under the brand name “CS-Pro.” Signum claims that this platform will be a groundbreaking innovation in Hong Kong.
The Hong Kong SFC issued preliminary regulations for trading platforms for virtual assets and solicited public feedback last month. As part of the new licencing system starting in June, the SFC told digital currency exchanges that they had to send in applications for licences that would let ordinary investors trade specific high-capitalization tokens.
Since last year, when it solicited proposals from firms interested in STO services, Hong Kong has proposed new initiatives for the city’s cryptocurrency and digital asset sector.
Huobi Global also announced last month that it is applying for a license to conduct business in Hong Kong, potentially relocating its headquarters from Singapore to the particular administrative region.
Hong Kong has recently shown considerable interest in becoming a crypto centre, investing significantly to support the potential of technologies such as Web3.
Mid-December 2022 saw the debut of Hong Kong’s first two exchange-traded funds for cryptocurrency futures, which raised over $70 million before their debut. The event happened after the director of Hong Kong’s SFC said in October that Hong Kong is ready to regulate cryptocurrencies differently than China will in 2021.
