Signum Digital has received approval from Hong Kong’s Security and Futures Commission to offer security tokens.
Signum Digital, a joint venture of Coinstreet and Somerley, announced that it has received in-principle approval for its securities offering and subscription platform from the Hong Kong Securities and Futures Commission (SFC). A security token is a new category of virtual assets built on blockchain technology that represents ownership of tangible assets such as private stocks, real estate, art and collectibles. In conjunction with real-world assets, it can reduce risk for potential investors, streamline research processes, and provide a basis for investment opportunities.
Hong Kong Plans to Become a Crypto Hub
Signum Digital stated that after obtaining final authorization from the Hong Kong regulator, it will manage its STO platform using the CS-Pro brand.
Last month, Hong Kong SFC published preliminary regulations for virtual asset trading platforms. In line with the licensing system scheduled to launch in June, the SFC has required digital currency platforms to apply for licenses that will allow day traders to buy and sell certain high-capital tokens.
Hong Kong has been proposing new ventures for the city’s cryptocurrency and digital assets sector since last year when it invited firms interested in providing STO services to submit proposals.
Cryptocurrency exchange Huobi Global also announced last month that it has applied for a license to operate in Hong Kong and will likely relocate its headquarters from Singapore to Hong Kong.
Recently, Hong Kong has shown great 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 (ETFs) for cryptocurrency futures, raising over $70 million before they hit the market.
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