May 29, 2024
DigiFT Receives Green Light from MAS for Innovative Crypto Asset Exchange
Latest Cryptocurrency News

Singapore’s MAS Grants DigiFT Approval for Revolutionary Crypto Exchange Features

DigiFT, an exchange for digital assets, has obtained approval from the Monetary Authority of Singapore (MAS) to operate collective investment schemes and function as an “organized market” for secondary-market trading, as per Henry Zhang, the CEO and founder of the Singapore-based company. Zhang mentioned in an interview that the exchange was granted the Capital Markets Services (CMS) license by the central bank on Tuesday and obtained a Recognised Market Operator (RMO) license on Dec. 1.

Singapore has been aiming to strike a balance between regulating cryptocurrencies and fostering innovation in the crypto space. Recently, Ravi Menon, the Managing Director of MAS, remarked that “Cryptocurrencies have failed the test of digital money,” while also emphasizing alternative uses of the technology beyond crypto speculation.

DigiFT’s acknowledgment by MAS follows an 18-month process involving participation in the central bank’s FinTech Regulatory Sandbox.

“DigiFT is the initial exchange with an automatic market making (AMM) mechanism to be admitted into the MAS FinTech Regulatory Sandbox,” highlighted Zhang. The AMM functions as the foundational protocol powering decentralized exchanges (DEXs), eliminating the dependence on centralized exchanges.

Zhang explained, “MAS admits innovative business models to their regulatory sandbox to observe such models within a controlled environment, and one needs to graduate from the sandbox in order to receive full licenses. No other business model with an AMM mechanism has been admitted to the sandbox. As the primary regulated exchange on the public blockchain utilizing an AMM mechanism for secondary trading, we are committed to pushing innovation boundaries, including the tokenization of real-world assets.”

DigiFT’s platform, constructed on the Ethereum blockchain, intends to provide secondary trading liquidity for security tokens backed by real-world assets like bonds and equities. This enables investors to engage in subscription, trading, and redemption of on-chain assets using fiat currency or stablecoins.

Image by freepik

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