Hong Kong’s Security and Futures Commission (SFC) has granted Signum Digital a license to offer security tokens after its application for virtual asset trading licenses.
Signum Digital, a joint venture between Coinstreet and Somerley, has announced that its security token offering (STO) and subscription platform has acquired preliminary permission from the Hong Kong Securities and Futures Commission (SFC).
Security tokens are a new class of digital assets based on blockchain technology that reflects ownership of actual assets such as private stocks, real estate, art, and collectibles. By being tied to real-world assets, the tokens may reduce risks for prospective investors, facilitate research, and give a basis for the market value of the investment opportunity.
Signum Digital asserts that, upon receiving final approval from the SFC of Hong Kong, it will handle the STO platform under the brand name “CS-Pro.” According to Signum, this platform will be a groundbreaking development in Hong Kong.
The Hong Kong SFC issued provisional regulations for trading platforms for virtual assets and solicited public feedback last month. The SFC demanded that digital currency exchanges submit license applications allowing ordinary investors to trade specified high-capitalization tokens as part of the future licensing scheme slated to commence in June.
Since last year, when it solicited ideas from firms interested in providing STO services, Hong Kong has been proposing new measures for the city’s cryptocurrency and digital asset market.
Huobi Global also stated last month that it is looking for a license to conduct business in Hong Kong, perhaps relocating its headquarters from Singapore to the special administrative region.
Hong Kong has recently shown considerable interest in becoming a crypto hub, investing extensively to support the promise 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 prior to their debut. The event occurred shortly after the chairman of Hong Kong’s SFC indicated in October that Hong Kong is willing to differentiate its approach to crypto regulation from China’s 2021 crypto ban.