Accredited Singaporean investors may qualify for recognition of cryptocurrencies when evaluating assets
Singapore-based private exchange ADDX plans to recognise cryptocurrencies owned by accredited investors. This decision makes the platform the only financial institution in the country that works with digital assets.
Private exchange ADDX announced the recognition of cryptocurrencies by accredited investors. This innovation increases the number of users who are eligible for this status and may get more investment opportunities in private markets that are relatively stable during a period of high volatility. In particular, they will have access to private equity and venture capital funds, hedge funds, and investments in Pre-IPO.
Given the risks associated with cryptocurrencies, the platform will take additional protective measures. It is planned to recognise only digital currencies with a higher market value and use discount rates.
Criteria of ADDX accredited investors
Peculiarities of the recognition of cryptocurrencies in Singapore
Initially, the platform will recognise three main tokens - Bitcoin, Ethereum, and USDC. The following discount rates will be used in the evaluation process: 50% for BTC and ETH and 10% for USDC. The list of coins and rates will be regularly reviewed, considering the current crypto market conditions.
According to ADDX CEO Oi-Yee Choo, “With a large minority of investors owning crypto, it is reasonable for these digital assets to be recognised as a part of one’s portfolio – not unlike any other assets that can be valued in the marketplace, such as real estate or equity”.
As a regulated financial institution that understands blockchain technology, ADDX is well-positioned to bridge the two worlds – traditional finance and digital assets.said Oi-Yee Choo.
