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ADDX starts recognizing crypto while onboarding accredited investors

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ADDX, a Singapore-based private equity platform, has become the first financial institution in the city-state to recognize crypto assets by vetting investors wishing to use its platform. Press release.

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The firm’s decision to include crypto wealth when evaluating accredited investors comes amid growing adoption of digital assets among financial services companies. According to the report, ADDX will only recognize cryptocurrencies with a high market value. ADDX will initially accept three tokens: Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC).

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Explaining why ADDX decided to start recruiting accredited investors based on their crypto wealth, CEO Oi-Yi Chu said:

Cryptocurrencies are here to stay. They no longer exist only on the fringes of the conversation about wealth and investment.

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He added that the vast minority of investors own cryptocurrencies. Chu considers it vital to recognize digital assets as part of an investor’s portfolio.

Providing more investors for private market investments

The Monetary Authority of Singapore (MAS) requires an investor to have a minimum income of $217,991.57 in the last 12 months to qualify as an Accredited Investor. In addition, the investor must have $730,000 in net financial assets and $1.46 million in net personal assets.

ADDX will help more people become an accredited investor by recognizing cryptocurrencies. In turn, they will be able to participate in private market investments such as private equity and venture capital funds, hedge funds and pre-public offerings.

According to the report, ADDX will introduce risk management measures that take into account the price volatility of cryptocurrencies. For example, a firm will only recognize high-value cryptocurrencies in the net personal asset category. The company will also apply a 50% discount on Bitcoin (BTC) and Ethereum (ETH) settlements and a 10% discount on United States Dollar (USDC) coins.

Singapore continues to be cautious about crypto. The city-state seeks to regulate a growing asset class despite its ambitions to become Asia’s crypto and blockchain capital. In April, the Singapore Parliament passed a omnibus bill giving MAS more powers and introducing stricter rules for crypto companies.





Credit : cryptoslate.com

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