(In the Photo: The Launch of Shanghai-Hong Kong Stock Connect. Image courtesy Hong Kong Stock Exchange)
CEZEX, which is a security token exchange based ion Philippines, will launch their blockchain-based security token services in Hong Kong to make it the first exchange of its kind to offer regulated security token in the country. The exchange will open and start trading in first quarter of 2019. This is after Inbase Partners, the company behind the exchange, received a license from the Cagayan Economic Zone Authority (CEZA) earlier this year.
The plan is to digitize the existing financial system on blockchain. The company wants to start by tokenizing stocks, bonds and real estate later according to officials from the company. It will work with multiple brokerage firms in order to make this possible. Therefore, the exchange will trade assets-backed tokens. Listing approval will take about two to three months according to Inbase Partners managing partner Carlos Salas speaking to Yahoo news.
Inbase Partners launched in 2014 and focuses on secondary trading and fundraising for digital asset-related projects. The company is partnering with several Hong-Kong broker-dealers to make this plan possible.
The plan will avail more options to security token holders in the country, who have little options in regards to trading their holdings in the traditional brokerage system that deals with one asset class. Thus the platform will offer more liquidity that traditional-style security exchanges and will have a network of multi-asset class brokers. Offering security tokens means customers will need to go through the Know Your Customer (KYC) and anti-money laundering AML laws such that they reveal their true identity before participating in the market.
Cagayan Economic Zone Authority (CEZA) oversees financial regulations in the Philippines special economic zone located in Luzon. However, generally, the Hong Kong Securities and Futures Commission (SFC) has embraced cryptocurrency security tokens even as interest in digital assets increased. It said that there is a growing trend of intermediaries who are introducing their business activities to provide trading services involving cryptocurrency assets.