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.