Hong Kong SFC Grants Signum Digital Approval For Security Token Offering
- Security tokens are a new kind of digital asset based on blockchain technology.
- Signum Digital claims it will operate the STO platform under the CS-Pro brand.
Coinstreet and Somerley’s joint venture Signum Digital has revealed that their security token offering (STO) and subscription platform has been given an “approval-in-principle” by the Hong Kong Securities and Futures Commission (SFC).
Security tokens are a new kind of digital asset based on blockchain technology. It reflects ownership of tangible assets including private equity, real estate, artwork, and collectibles. The tokens’ ties to physical assets mean they may potentially reduce investment risk. Also, streamline due diligence, and support the opportunity’s market value.
After receiving final approval from Hong Kong’s SFC. Signum Digital claims it will operate the STO platform under the CS-Pro brand. According to Signum, this platform will represent a first of its kind in Hong Kong.
Hong Kong Aiming To Become Crypto Hub
The Hong Kong SFC issued draft rules for virtual asset trading platforms last month and solicited public feedback. In preparation for the licensing system’s launch in June. The SFC required digital currency exchanges to submit license applications that would allow ordinary investors to trade certain high-capitalization tokens.
Companies interested in STO services in Hong Kong were encouraged to submit ideas for new initiatives in the city’s cryptocurrency and digital asset industry last year.
Huobi Global, another cryptocurrency exchange, revealed last month that it was asking for a license to operate in Hong Kong and was considering relocating its headquarters from Singapore to the special administrative region.
Investing extensively in the potential of technologies like Web3 shows how serious Hong Kong is about becoming a crypto hub. This development followed an October announcement by the head of Hong Kong’s SFC that the city is ready to set itself apart from China’s crypto prohibition, which came into effect in 2021.
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