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Usha Yadav
Jun 8, 2022
by Usha Yadav

ADDX Now Recognizes Cryptocurrency for Accredited Investors

ADDX

Table of contents

  1. Monetary Authority of Singapore-Regulated ADDX
ADDX, a Singapore-based private securities platform, has announced that it is the first financial institution in the city-state to include cryptocurrencies in assessing high-net-worth clients' assets. The move reflects financial services organizations' increased acceptance of digital currencies as they aim to reach a wider audience of investors. ADDX, which has Singapore Exchange as a sponsor, said on Wednesday that it would only accept cryptocurrencies with a higher market value and value them using discount rates.

 

If an investor's income in the previous 12 months exceeded SGD 300,000 (US$218,000) or if their net worth of financial assets exceeded SGD 1 million (US$727,000), one of three conditions qualifies them for such a status in Singapore. A third possibility is that a person's assets exceed SGD 2 million (US$1.45 million). Cryptocurrency is not currently recognized as income or financial assets in the city-island-state but is recognized as net personal assets. ADDX stated that it would implement adequate risk management procedures by the legislation, taking price volatility into account.

Monetary Authority of Singapore-Regulated ADDX

The ADDX, which the Monetary Authority of Singapore controls, has also stated that it will only recognize cryptos with a more significant market capitalization and use a discount rate to value the assets to mitigate any potential risk. ADDX's CEO Oi-Yee Choo, in the statement, said,

"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. Recognizing crypto holdings helps us serve a much wider segment of investors."

ADDX, which began operations in 2020 after being founded in 2017, has become one of Southeast Asia's largest private market platforms in terms of overall trading volume, offering assets not widely available on public exchanges.

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ADDX Now Recognizes Cryptocurrency for Accredited Investors
Usha Yadav
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

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