Philippines' CEZEX Set to Launch Trading Platform in HK

Philippines-based security token exchange operator CEZEX plans to launch its platform in Hong Kong to allow companies to tokenize their assets.

Inbase Partners Limited, a Taiwan-based blockchain and initial coin offering (ICO) consultancy firm, said that the security token exchange it operates would provide trading solutions in Hong Kong starting with the first quarter of next year, South China Morning Post reported on Wednesday. CEZEX, as the Philippines-based exchange is called, aims to become the first security token trading platform in Hong Kong.

Carlos Salas, who is managing partner at Inbase Partners, stated that the exchange is licensed by the Cagayan Economic Zone Authority (CEZA), which runs a Special Economic Zone in the Philippines. CEZA hopes the region will become a fintech and cryptocurrency hub that would speed up blockchain adoption and would generate over 10,000 jobs.

Salas said that CEZEX is ready to offer a regulated security token trading platform in partnership with a Hong Kong-based licensed broker-dealer. He added:

“We have taken the existing financial system and digitalized it. CEZEX is not much different from a traditional exchange. But instead of trading securities, we trade asset-backed security tokens.”

Security tokens generally fall under the securities laws in the jurisdiction where they are issued and managed.

According to Salas, CEZEX intends to tokenize gold and real estate assets starting with next year, after which it would move to other assets, including bonds, stocks, and derivatives.

Salas noted:

“We are creating a broadly based broker-dealer network under our exchange. While other broker-dealers specialize in only one asset class, our broker specializes in dealing in tokens, which represent a wide array of asset classes.”

CEZEX couldn’t launch its platform in Philippine as the local regulators haven’t approved it.