Singapore-based Exchange Receives Regulatory Approval
DigiFT, based in Singapore, has obtained approval from the Monetary Authority of Singapore (MAS) to run collective investment schemes (CIS) and a secondary-market trading platform. This demonstrates the exchange’s significant growth since entering MAS’ FinTech Regulatory Sandbox in 2020.
Empowering Investment Products and Services
The CMS license enables DigiFT to offer a wide range of investment products and services to both institutional and retail investors, while the RMO license allows it to operate a secondary-market trading platform for digital assets. DigiFT’s AMM mechanism will enhance liquidity for digital assets and facilitate price discovery.
Offering Secondary Trading Liquidity for Security Tokens
DigiFT’s platform will now provide secondary trading liquidity for security tokens backed by real-world assets such as bonds and equities. This enables investors to trade on-chain assets using fiat currency or stablecoins. The exchange’s recognition from MAS comes after a rigorous process in the central bank’s FinTech Regulatory Sandbox.
MAS’s Approach to Crypto Space
MAS has been focusing on balancing innovation and regulation in the crypto space. While expressing skepticism about cryptocurrencies as digital money, they also recognize the potential of blockchain technology beyond crypto speculation. DigiFT’s recognition underscores Singapore’s efforts to foster innovation in the digital asset space while ensuring regulatory compliance.
Role of the FinTech Regulatory Sandbox
The MAS FinTech Regulatory Sandbox observes innovative business models in a controlled environment, allowing only graduates to receive full licenses. DigiFT’s AMM mechanism is unique, making it the first of its kind to be admitted to the sandbox.
DigiFT’s Future Endeavors
As a regulated exchange on the public blockchain with an AMM mechanism for secondary trading, DigiFT aims to continue innovating, including tokenizing real-world assets.
In summary, DigiFT’s authorization from MAS underscores the exchange’s focus on security tokens and real-world assets and is a significant development for the Singaporean crypto ecosystem.
Hot Take: DigiFT’s Regulatory Milestone
The authorization from MAS is a significant development in the Singaporean crypto ecosystem, reflecting the exchange’s focus on security tokens and real-world assets in line with MAS’s regulatory approach.
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