SDAX Receives Regulatory Green Light For Digital Asset Exchange
- The new exchange will operate 16 hours a day, and will use the Ethereum blockchain protocol and an integrated custody solution.
- Investors will have to meet strict KYC and AML standards in order to access SDAX’s platform, which will have same day settlements.
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Singapore Digiassets Exchange (SDAX) has received approval-in-principle (AIP) from the Monetary Authority of Singapore (MAS) launch a digital asset exchange, the firm said in a press release on 1 February.
According to the announcement, SDAX has become one of the few digital asset exchanges to receive AIP after applying to become a Recognized Market Operator with the MAS. The newly acquired AIP will allow the firm to contribute to Singapore’s fintech sector by offering innovative solutions to raise funds and trade fractionalized and digitized assets. SDAX Chairman Khoo Boon Hui said in a statement:
“With the AIP from MAS, SDAX is now in a strong position to attract asset owners, accredited investors and institutional investors from around the world to our Singapore-based platform.”
In order to gain access to SDAX’s new digital asset operations, investors will have to meet strict Know-Your-Customer (KYC) and Anti-Money Laundering (AML) standards. The new exchange will operate 16 hours a day, and will use the Ethereum blockchain protocol and an integrated custody solution. The trading platform will also cover most major markets with “T+0 settlement”.
Built using blockchain technology, SDAX aims to “simplify and speed up” traditional exchange processes. The company is backed by the RHT Group of Companies, which used its legal, fintech and professional services to assist SDAX in obtaining the AIP.
- The requirement to deposit customer assets into a statutory trust comes as a result of a MAS public consultation from October 2022 focused on reducing risk in crypto trading.
- Singapore’s central bank also restricted crypto firms from facilitating lending and staking to retail customers, though the services are still available to institutional clients.
Monetary Authority of Singapore building. The Straits Times
- Crypto.com has once again expanded its regulatory achievements with the acquisition of a major payment institution license for digital payment token services in Singapore.
- The license, for which the company received an in-principle approval last June, enables the exchange to provide a greater range of payment services in Singapore.
- The now rebranded custody arm of crypto exchange Binance, called Ceffu, is planning to apply for a Capital Markets Service license with the Monetary Authority of Singapore.
- If it is able to acquire the license, Ceffy plans to offer custodial services to only institutional and high net-worth individuals in Singapore.