Signum Digital, a Coinstreet and Somerley joint venture, has announced that it has received approval in principle from the Hong Kong Securities and Futures Commission (SFC) for its security token offering (STO) and underwriting platform..
Security tokens are a new category of digital assets based on blockchain technology that represent ownership of tangible assets, such as private shares, real estate, works of art, and collectibles. By being tied to real-world assets, tokens can reduce risks for potential investors, facilitate research processes, and provide a basis for the market value of the investment opportunity..
Signum Digital has stated that upon receipt of final authorization from the Hong Kong SFC, it will operate the STO platform using the brand name “CS-Pro”. This platform will be a pioneer in Hong Kong, according to Signum.
Last month, the Hong Kong SFC released preliminary regulations for virtual asset trading platforms and urged the general public to provide input.. Under the upcoming licensing system, which is scheduled to start in June, the SFC mandated that digital currency exchanges submit license applications allowing everyday investors to trade specific large-cap tokens.
Hong Kong has been proposing new initiatives for the cryptocurrency and digital asset sector since last yearwhen he invited companies interested in providing OST services to submit proposals.
The crypto exchange Huobi Global also announced last month that it is applying for a license to operate in Hong Kong, possibly moving its headquarters from Singapore to the special administrative region..
Recently, Hong Kong has shown a lot of interest in becoming a cryptocurrency hub.investing heavily in supporting the potential of technologies like Web3.
In mid-December 2022, Hong Kong launched its first two exchange-traded funds for cryptocurrency futures, which raised over $70 million before their debut.. The development came shortly after the head of the Hong Kong SFC announced in October that Hong Kong is willing to distinguish its regulatory approach to cryptocurrencies from the Chinese crypto ban enforced in 2021.
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