Hong Kong-based Signum Digital Receives Approval For Offering Security Tokens

March 17, 2023

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Hong Kong’s Security and Futures Commission (SFC) has shown the green light to Signum Digital to offer Security Token in the city after receiving several applications for virtual asset trading licenses. Signum Digital is a joint venture of Somerley and Coinstreet in Hong Kong.

Security Tokens are emerging as a new category of digital assets that are built on blockchain technology. It represents the ownership of tangible assets such as real estate, art, collectibles, or private equities. Since security tokens are linked to real–world assets the tokens lower risk for potential investors. It also facilitates the research process by providing the foundation for analyzing the market value of the investment opportunity.

After receiving the approval for issuing a Security token, Signum Digital has announced that Hong Kong’s SFC will manage its STO platform under the brand name “ CS – Pro”. According to Signum, this platform will be one of the pioneering developments in Hong Kong.

Alongside, Hong Kong SFC also released preliminary regulations relating to the virtual asset trading platforms and requested the general public input. The SFC also mandated that digital currency exchanges submit license applications to allow investors to trade specific high – capitalization tokens.

Hong Kong also proposed new initiatives for Hong Kong’s cryptocurrency and digital asset sector where it invited companies interested in providing STO services to pitch their proposals.  In December 2022, Hong Kong launched its first two exchange–traded funds to facilitate cryptocurrency futures. These exchanges raised about $70 Million after their debut. Moreover, the city also displayed its interest in becoming the crypto hub that invests heavily in supporting potential technologies like Web 3.0.

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