Singapore Trading Platform Recognizes Crypto Assets From Accredited Investors

A bitcoin representation is seen in an illustrative photo taken at the Maison du Bitcoin in Paris, France, June 23, 2017. REUTERS/Benoit Tessier

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SINGAPORE, June 8 (Reuters) – Singapore-based private securities platform ADDX said it had become the first financial firm in the city-state to recognize cryptocurrency in its valuation of wealthy client assets. .

The move underscores the growing acceptance of digital currencies among financial services firms as they seek to tap into a wide range of investors.

ADDX, whose backers include Singapore Exchange (SGXL.SI), said in a statement on Wednesday that it would only recognize cryptocurrencies with higher market value and apply discount rates when valuing. of these assets.

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“Cryptocurrencies are here to stay. They no longer exist just on the fringes of wealth and investment conversations,” said ADDX CEO Oi-Yee Choo.

“With a large minority of investors owning crypto, it makes sense that these digital assets should be recognized as part of one’s portfolio – much like any other asset that can be valued in the market, such as real estate or stocks,” Choo said. .

Under Singapore regulations, individuals must have at least S$300,000 ($217,991.57) in income over the past 12 months, S$1 million in net financial assets, or S$2 million net personal assets to qualify as accredited investors.

ADDX said it will only accept crypto assets in the net personal asset category and apply a 50% discount rate for bitcoin or ether when calculating the value of such holdings and a discount 10% for the USDC stable coin.

Cryptocurrencies – once considered a niche asset for risk-hungry investors – have become more popular during the COVID-19 pandemic. While the value of bitcoin has recently fallen, the overall crypto market is still valued at $1.2 trillion.

“In the future, we will likely allow clients to fund their investment portfolios with cryptocurrencies and convert their assets between fiat currencies and cryptos,” Choo said.

($1 = 1.3762 Singapore dollars)

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Reporting by Anshuman Daga; Editing by Sam Holmes

Our standards: The Thomson Reuters Trust Principles.

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