Signum Digital, a joint venture of digital asset consultancy firm Coinstreet Holdings and Hong Kong-based financial group Somerley Capital Holdings, is the first company to win approval-in-principle in Hong Kong to operate a platform to trade security tokens, according to a Signum press release.
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Fast facts
- Signum Digital plans to offer professional investors a platform for the security tokens, known as STOs, which are traded on a blockchain and are linked to various asset classes, such as private equities, real estate, art and collectibles.
- Upon receiving final approval from Hong Kong’s Securities and Futures Commission (SFC), Signum will operate the STO platform under the brand name “CS-Pro.” The platform will be the first of its kind in Hong Kong, according to Signum.
- Hong Kong has been proposing new initiatives for the city’s cryptocurrency and digital asset sector since last year, when it invited firms interested in providing STO services to pitch proposals.
- Last month, the SFC published draft rules for virtual asset trading platforms set to take effect in June, including the requirement for crypto exchanges to apply for licenses that would allow retail investors to trade certain large-capitalization tokens.
- The region currently limits virtual asset trading to professional investors with more than HK$8 million (about US$1 million) of proven assets.
- Major cryptocurrency exchange Huobi Global also announced last month that it is applying for a license to operate in Hong Kong, possibly moving headquarters from Singapore to the special administrative region.
See related article: Hong Kong begins public consultation on crypto licensing regime