DigiFT Receives Capital Markets Services (CMS) License
DigiFT, a decentralized exchange for digital assets, has obtained a capital markets services (CMS) license from the Monetary Authority of Singapore (MAS). This license allows DigiFT to engage in capital markets activities, including dealing in securities and units of collective investment schemes through tokens.
In addition to the CMS license, DigiFT has also been recognized by MAS as a market operator, granting the exchange the ability to operate an organized market for secondary trading of security tokens on the public blockchain. Henry Zhang, founder and CEO of DigiFT, expressed his excitement about this achievement and stated that they will continue to unlock innovations in the intersection of finance and blockchain technology.
DigiFT Offers Secondary Trading for Security Tokens
DigiFT’s platform is built on the Ethereum blockchain and offers secondary trading liquidity for security tokens through an automatic market-making mechanism. The tokens traded on DigiFT are backed by real-world assets such as bonds, equities, and collective investment schemes. With the CMS license in place, DigiFT plans to introduce a wider range of tokenized real-world assets and Web3 assets.
Established in 2021, DigiFT is the first decentralized exchange with an automatic market-making mechanism to be enrolled in the MAS fintech regulatory sandbox. This regulatory sandbox allows innovative fintech companies to test their solutions in a controlled environment.
Singapore Pushes For Crypto Regulations
Singapore has been actively engaging with global financial authorities in the realm of digital currencies. In September 2023, MAS successfully completed a joint test of cross-border trading and settlement of wholesale central bank digital currencies. In July, Singapore revealed plans to impose a trust requirement on cryptocurrency exchanges to protect investors from potential losses. The MAS is also proceeding with its proposal to ban lending and staking for retail investors.
The MAS emphasized the importance of regulations in safeguarding consumers, but also highlighted the high risk and speculative nature of digital payment token trading.
Hot Take: DigiFT Gains Regulatory Approval in Singapore
DigiFT’s recent acquisition of a CMS license and recognition as a market operator by MAS marks a significant milestone for the exchange. This achievement allows DigiFT to engage in capital markets activities and operate an organized market for secondary trading of security tokens on the public blockchain. With plans to introduce a wider range of tokenized assets, DigiFT aims to continue unlocking innovations at the intersection of finance and blockchain technology. Singapore’s push for crypto regulations demonstrates its commitment to fostering technological advancements while ensuring consumer protection in the digital asset industry.
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