Singapore’s ADDX to Recognize Accredited Investors’ Crypto Assets

Singapore-based private securities firm ADDX has said that it will also include cryptocurrencies in assessing the assets of high net worth clients. It is the first financial firm in Singapore to do so. This indicates the increasing importance of cryptocurrencies in the financial sector. This can also help financial firms to increase the number of their clients.

According to a Reuters report, investors in ADDX include the Singapore Exchange. The firm said in a statement that it would only recognize cryptocurrencies with higher market value and would be valued at discount rates. Oi Yee Choo, chief executive officer of ADDX, said, “Cryptocurrencies are going to be sustainable. With so many investors holding cryptocurrencies, it would be appropriate to recognize it as part of a portfolio.” To be eligible as Accredited Investors under Singapore’s regulations, one must have a minimum income of Singapore $ 300,000, net financial assets of Singapore $ 10 million or net personal assets of Singapore $ 20 million in the past 12 months.

The firm stated that it will only accept cryptocurrencies in the Net Personal Assets category and a 50 percent discount rate will be applied when calculating the value of holdings in Bitcoin or Ether. There will be a 10 percent discount for stablecoin USDC.

Until a few years ago, cryptocurrencies were considered an asset for risk-averse investors. The popularity of cryptocurrencies increased significantly during the Corona pandemic. However, the crypto market has fallen significantly in the past few months. The value of bitcoin, the largest cryptocurrency by market capitalization, has dropped to less than half from a high in November last year. Investors have suffered heavy losses due to the fall in the prices of cryptocurrencies. The total value of the crypto market has come down to around $1.2 trillion. ADDX hopes to be able to allow its clients to convert their crypto assets into normal currency in the coming years. Regulations are being made in many countries regarding cryptocurrencies. This may increase the number of people investing in this segment.

(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)<!–

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