Singapore’s ADDX Recognizes Crypto for Accredited Investors

ADDX said it has become Singapore’s first financial institution to allow investors to gain accredited status by way of crypto

article-image

Singapore skyline. Source: Shutterstock

share

key takeaways

  • Cryptocurrency can be used to deem an individual as an accredited investor in Singapore recognized as net personal assets
  • An accredited investor needs to meet one of three criteria above a particular financial threshold to qualify

Capital markets platform ADDX said Wednesday it has become the first financial institution in Singapore to recognize cryptocurrency for the purposes of onboarding accredited investors.

In a statement, ADDX said it will begin recognizing bitcoin, ether and USDC for individuals as part of the city–island-state’s “accredited investor” status. Under Singapore law, investors seeking accreditation are required to meet a certain threshold to be granted access to particular financial products.

An accredited investor is an individual with a special status under financial regulation laws with differing regulations depending on the country or jurisdiction.

One of three criteria qualify an investor for such a status in Singapore including if their income in the previous 12 months exceeds SGD 300,000 (US$218,000), or their net worth of financial assets exceeds SGD 1 million (US$727,000). A third option, that an individual’s personal assets exceed SGD 2 million (US$1.45 million), also counts.

Cryptocurrency is not currently recognized within the city-island-state as either income or financial assets though they are recognized as net personal assets. ADDX said it will implement appropriate risk management measures within the eyes of the law, taking into account price volatility.

Monetary Authority of Singapore-regulated ADDX also said it will only recognize cryptos with a higher market capitalization and will apply a discount rate when valuing the assets to offset any potential risk.

“With a large minority of investors owning crypto, it is reasonable for these digital assets to be recognized as a part of one’s portfolio,” said ADDX’s CEO Oi-Yee Choo in the statement. “Recognizing crypto holdings helps us to serve a much wider segment of investors.”

Founded in 2017 with operations commencing in 2020, ADDX has grown to become one of Southeast Asia’s largest private market platforms by total trading volume, offering assets not readily available on public exchanges.

Leveraging the use of blockchain tech and smart contracts, the platform tokenizes a wide array of assets from equities to bonds as well as pre-IPO equity and hedge funds.

Choo added that reaching an understanding between crypto tech and traditional finance had positioned the firm ahead of typical offerings by enabling it to bridge two worlds.

Choo was appointed as the platform’s head in March in a move from UBS, where she was charged with leading the bank’s investments in Singapore.

“Investors increasingly expect a seamless view of their complete holdings because their traditional wealth and crypto wealth ultimately belong to a single portfolio,” she said.  “In time to come, we are likely to enable customers to fund their investment wallets with cryptocurrencies and to convert their assets between fiat currencies and crypto.”


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

The EIA said it will “destroy” survey responses and put out a new Federal Register notice

article-image

In a striking display of unity and resolve, the cryptocurrency industry recently mounted a crucial legal challenge against undue governmental overreach resulting in victory

article-image

Blast encouraged users to deposit into its multisig. Now they can finally exit

article-image

Eight state attorney generals warn the SEC’s enforcement actions could “stymie” potential state legislation around crypto

article-image

BlackRock’s bitcoin ETF is well on its way to eclipsing MicroStrategy for total bitcoin held

article-image

Why I’m not mad that I spent all of my bitcoin on food, rent and tennis lessons