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Singapore’s ADDX Recognizes BTC, ETH, USDC for Onboarding of Accredited Investors

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ADDX, a private market trading platform backed by Singaporean exchanges, will recognize investors’ holdings in bitcoin, ether and US dollars in order to grant them “accredited investor” status.

Deposit BTC, ETH, USDC

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However, this will apply a massive 50% discount on Bitcoin and Ethereum and 10% off USDC to calculate their value to calculate the net personal assets of investors. With this move, ADDX becomes the first financial institution in Singapore to offer Accredited Investor status based on crypto holdings, media. reports said.

“As part of the Accredited Investor Verification Process, ADDX will begin recognizing three coins – Bitcoin, Ether, and the US Dollar. The discount rates that ADDX will apply when calculating the value of these crypto holdings are 50% for Bitcoin or Ether and 10% for USDC,” ADDX said in a statement.

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There has been a lot of buzz around the digital asset ecosystem in Singapore lately. On Monday, Jack Ma’s Ant Group announced the launch of ANEXT Bank digital bank in the country, which aims to serve small and medium enterprises.

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About a week ago, Singapore’s central bank, the Monetary Authority of Singapore, launched the Guardian Project, which aims to identify potential use cases for asset tokenization and decentralized finance (Defi), media reported.

Digital assets aren’t going anywhere: ADDX CEO

“Cryptocurrencies are here to stay. They no longer exist only on the fringes of wealth and investment conversations… With a significant minority of investors who own cryptocurrencies, it makes sense to recognize these digital assets as part of their portfolio, unlike any other assets that can be valued in the market, such as real estate or stocks.” , said ADDX CEO Oi-Yi Chu.

Citing a Gemini survey, the private equity market platform noted that in 2021, the global cryptocurrency ownership rate has risen to over 80%. “The ownership rate reached 30% in Singapore, 24% in Hong Kong, 20% in the US, 18%. in the UK and 17% in Germany,” he adds.


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Risk Management Measures

“In accordance with regulations, ADDX will take appropriate risk management measures that take into account the price volatility of crypto assets. For example, ADDX will only recognize cryptocurrencies with higher market caps and will apply a discount rate when valuing assets,” the company said in a statement.

Singapore does not recognize cryptocurrencies as income or financial assets, but refers to them as net personal assets. Taking price volatility into account, ADDX will apply appropriate risk management measures when using cryptocurrencies to calculate net personal assets in order to convince regulators.

These assets and discount rates will be reviewed at regular intervals and may be revised as market conditions change, ADDX said in a statement.

Criteria for Accredited Investors

Under Singapore law, investors need the status of “accredited investor” in order to be able to invest in certain financial products. One of the three criteria for an individual to qualify as an accredited investor is net personal assets of over S$2 million (US$1.45 million).

The final step of ADDX is the recognition of cryptocurrencies to calculate an individual investor’s net personal asset, which must exceed S$2 million to qualify as an accredited investor. The other two criteria are a minimum income of S$300,000 ($217,991.57) in the last 12 months and S$2 million ($1.45 million) in net financial assets.

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Credit : cryptopotato.com

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