Southeast Asia

Singapore’s ADDX to Recognise Its Clients’ Crypto Assets

 

Singapore’s ADDX will recognise crypto assets in its assessment of high-net worth individuals, becoming the first securities firm to take digital money such as bitcoin into consideration.

The move underscores the growing acceptance of digital currencies among financial institutions as they seek a wider range of investors.

ADDX, whose backers include Singapore Exchange, said it would recognise only crypto assets with a higher market value and would apply discount rates when valuing these assets.

“Cryptocurrencies are here to stay. They no longer exist only on the fringes of wealth and investment conversations,” ADDX chief executive Oi-Yee Choo said.

“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,” Choo said.

Under Singapore’s regulations, individuals need to have at least S$300,000 ($220,000) of income from the past 12 months, S$1 million in net financial assets or S$2 million in net personal assets to qualify as accredited investors.

ADDX said it will accept crypto assets only in the category of net personal assets and will apply a 50% discount rate for bitcoin or ether when calculating the value of these holdings and a 10% discount for the USDC stablecoin.

Crypto assets – once seen as a niche for risk-hungry investors – became more popular during the Covid-19 pandemic. While bitcoin’s value has recently fallen, the overall crypto market is still valued at $1.2 trillion.

 

  • Reuters, with additional editing by George Russell

 

 

READ MORE:

Crypto Crash May Prompt Tighter China Curbs – Economic Daily

Winklevosses’ Gemini Sued by US Amid ‘Crypto Winter’

Popular NFT Game Stepn Cuts Off China Users – CryptoSlate

 

 

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

Recent Posts

Chinese Outbound EV Investment ‘Hit Record High in 2023’

China could soon be producing 10 million excess vehicles per year, adding fuel to growing…

15 hours ago

India Gives Go-Ahead to $15.2 Billion Triple Chip Plants Plan

Tata Group and CG Power will partner up with Taiwan's Powerchip and Japan's Renesas on…

18 hours ago

China’s BYD Confirms Mexico Factory Plan But Rules Out Exports

Reports of BYD’s plans to expand production in Mexico spurred speculation that the EV giant…

20 hours ago

Biden Orders Probe Into Data Security Risks From Chinese EVs

The White House said the probe could lead to restrictions being imposed on Chinese EVs…

21 hours ago

US to Block Personal Data Sales to China, Russia – engadget

The order will also bar data brokers from selling large troves of Americans’ personal information…

21 hours ago

SpaceX’s Talks With Vietnam Over Starlink Internet Hit a Snag

Hanoi looks to have denied SpaceX's request for an easing of rules on foreign ownership…

22 hours ago