A bitcoin representation is seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, June 23, 2017. REUTERS/Benoit Tessier
SINGAPORE, June 8 (Reuters) – Singapore-based private securities platform ADDX said it has become the first financial firm in the city-state to recognise cryptocurrency in their assessment of assets of high-net worth clients.
The move underscores the growing acceptance of digital currencies among financial services firms as they seek to tap a wide array of investors.
ADDX, whose backers include Singapore Exchange (SGXL.SI), said in a statement on Wednesday that it would recognise only cryptocurrencies 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," said 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," Choo said.
Under Singapore's regulations, individuals need to have at least S$300,000 ($217,991.57) 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 USDC stable coin.
Cryptocurrencies – once seen as a niche asset 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.
"In time to come, we are likely to enable customers to fund their investment wallets with cryptocurrencies and to convert their assets between fiat currencies and crypto," said Choo.
($1 = 1.3762 Singapore dollars)
Our Standards: The Thomson Reuters Trust Principles.
The audio streaming service Spotify Technology SA will host its first investor day since going public in 2018 on Wednesday, hoping to stoke Wall Street's enthusiasm despite the slowing global economy.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved
Related Posts
