Signum Digital, a joint venture between Coinstreet and Somerley, has announced that its security token offering (STO) and subscription platform has received approval-in-principle from Hong Kong’s Securities and Futures Commission (SFC).
Security tokens are a new type of digital asset based on blockchain technology that represent ownership of tangible assets such as private equity, real estate, art, and collectibles. By being linked to real-world assets, tokens can reduce risk for potential investors, facilitate the research process and provide a basis for the market value of investment opportunities.
Signum Digital claims that it will use the “CS-Pro” brand to manage the STO platform after obtaining the final authorization from the Hong Kong Securities Regulatory Commission. According to Signum, the platform will be the first of its kind in Hong Kong.
Last month, Hong Kong's Securities and Futures Commission issued preliminary regulations for virtual asset trading platforms and urged the public to provide comments. Under the forthcoming licensing regime, which is scheduled to start in June, the CSRC will require digital currency exchanges to submit license applications to allow everyday investors to trade specific highly capitalized tokens. Hong Kong has been proposing new initiatives for the city’s cryptocurrency and digital asset industry since last year, when it invited companies interested in offering STO services to pitch proposals.
Cryptocurrency exchange Huobi Global also announced last month that it is applying for a license to operate in Hong Kong and may move its headquarters from Singapore to the special administrative region.
Recently, Hong Kong has shown great interest in becoming a crypto hub, investing heavily to support the potential of technologies such as Web3.
In mid-December 2022, Hong Kong launched its first two cryptocurrency futures exchange-traded funds, raising more than $70 million before listing. The incident comes shortly after the head of Hong Kong’s Securities Regulatory Commission announced in October that Hong Kong is willing to differentiate its approach to cryptocurrency regulation from China’s cryptocurrency ban due to be implemented in 2021.
