Signum Digital recently announced that it received approval from Hong Kong’s Securities and Futures Commission to move forward with its security token offering and subscription-based platform.
Security tokens, a new type of virtual assets constructed on blockchain technology, represent ownership of physical assets such as real estate or artwork. The tokens are connected to real-world assets, and as such, may reduce investor risk. They also facilitate research and help establish the market value of investment opportunities.
Signum Digital claims that it has received authorization from Hong Kong’s Securities and Futures Commission to operate the platform under the name “CS Pro.” According to Signum, this will be a groundbreaking development for the city.
The Hong Kong Securities and Futures Commission published preliminary regulations last month for digital asset trading platforms. They also urged the public to give their feedback on these regulations. The commission now requires that crypto exchanges submit applications for licenses that would allow investors to trade highly capitalized tokens under the new licensing system.
Hong Kong has continued to propose new initiatives within the city’s virtual asset sector since last year when it began allowing companies that were interested in offering security token offering services to submit their proposals.
Last month, Huobi Global announced that it will apply for a license in Hong Kong. This could allow Huobi Global to move its headquarters from Singapore to Hong Kong. The city has also expressed interest in becoming a cryptocurrency hub and has invested heavily in technologies such as Web3.
Hong Kong launched its first ETFs for crypto futures in December 2022. They raised more than $70 million before the debut. This event took place shortly after the city’s Securities and Futures Commission announced that Hong Kong was willing to set its crypto regulation approach apart from the Chinese approach, which resulted in a total ban in 2021.