ADDX accepts cryptocurrencies for investor qualification

Cryptocurrency coins. Photo by Kanchanara on UnsplashCryptocurrency coins. Photo by Kanchanara on Unsplash

This item originally appeared on finews.asia

Crypto continues to enter the mainstream with private market bourse ADDX becoming the first financial institution in Singapore to count such assets towards qualification as an accredited investor.

Singapore Exchange-backed ADDX will accept crypto assets as part of the qualification process to become an accredited investor, according to a statement.

Based on current rules in Singapore, individuals can qualify as an accredited investor by meeting any one of three criteria which include annual income exceeding S$300,000 (US$218,000); net financial assets exceeding S$1 million; or net personal assets exceeding S$2 million.

While crypto assets are currently not recognized as income or financial assets, they qualify for the third category of net personal assets and ADDX will be the first to leverage this opportunity not only to expand the client base but to gain access to new digital asset investors.

‘Cryptocurrencies Are Here to Stay’

According to ADDX chief executive Oi-Yee Choo, cryptocurrencies are increasingly finding their way into investor portfolios and warrant recognition as another asset class.

“Cryptocurrencies are here to stay. They no longer exist only on the fringes of wealth and investment conversations,” Choo said, underlining ownership from a “large minority” of investors.

“Investors increasingly expect a seamless view of their complete holdings because their traditional wealth and crypto wealth ultimately belong to a single portfolio. They want the best of both worlds. At a time when the markets are volatile, this move is also designed to enable crypto investors to diversify into the regulated private markets, which tend to be more stable across different phases of market cycles.”