Digiassets Exchange (SDAX), an institutional-grade digital asset trading platform based in Singapore, has obtained a pre-approval from the country’s financial watchdog to operate a digital asset exchange.
Monetary Authority of Singapore (“MAS”) has granted an Approval-in-Principle (“AIP”) to SDAX as the regulatory authority welcomes innovation brought by blockchain technology in order to simplify and speed up traditional exchange processes. The digital asset trading platform also aims to offer new methods of fundraising and investment opportunities, including digitized debt, equity, and hybrid instruments with real estate as the underlying asset class.
Khoo Boon Hui, Chairman at SDAX, commented: “With the AIP from MAS, SDAX is now in a strong position to attract asset owners, accredited investors, and institutional investors from around the world to our Singapore-based platform. SDAX will contribute to Singapore’s fintech sector by offering innovative solutions to raise funds and trade fractionalized and digitized assets like real estate.”
Mah Bow Tan, Chairman of the Advisory Panel at SDAX, said: “Singapore is a globally trusted financial hub with strong government support for fintech and blockchain technology, backed by a forward-looking and comprehensive regulatory framework to govern digital finance. These factors will give the global market significant confidence in home-grown digital asset exchanges like SDAX.”
Backed by RHT Group of Companies, SDAX leverages the RHT ecosystem of legal, fintech, and professional services. Tan Chong Huat, Non-Executive Chairman of RHT Group and Non-Executive Deputy Chairman of SDAX, added: “The synergies between SDAX and our network of RHT professionals have enabled us to obtain the AIP within good time as well as strengthen our pipeline of projects to be listed and traded on SDAX in 2021. As an agnostic platform, SDAX can attract a wider net of investors from across all financial institutions to its exchange.”
Holding an Approval-in-Principle from Singapore’s MAS, the Digiassets Exchange is obliged to require proper Know-Your-Customers (“KYC”) and Anti Money-Laundering (“AML”) standards to access SDAX’s 16-hour daily trading covering all major markets with T+0 settlement. The digital asset trading platform is powered by the Ethereum protocol with an integrated custody solution in order to secure access to liquidity pools and investment products.
In early January 2021, Singapore passed a bill requiring any entity that facilitates the transmission, exchange, or storage of cryptocurrencies to be licensed following enhancements to the Payment Services Act. The goal is to tackle money laundering and asset evasion. The amendment gives new powers to the financial watchdog, including regulatory measures on such providers even if they may not possess the money or cryptocurrency involved. Under the new regime, MAS can demand a crypto service provider to segregate customer assets from its own assets.