On 15th March 2023, the Financial Services Commission (FSC) issued a communication to inform the public and stakeholders in the financial services industry about the recent updates made to the Guidance Notes on Security Token Offerings and Security Token Trading Systems. These updates now allow a Securities Trading System (STS) to hold custody of Security Tokens.
Once approved by the FSC, the above mentioned updates will be considered valid, provided that the following conditions are met:
The STS can demonstrate to the satisfaction of the FSC that its business model and infrastructure do not necessitate the services of a separate custodian.
The STS will be subject to any terms and conditions determined appropriate by the FSC.
You can access the updated Guidance Notes for further details and information HERE.