DigiFT Granted Regulatory Approvals by MAS Following FinTech Regulatory Sandbox Graduation
The post DigiFT Granted Regulatory Approvals by MAS Following FinTech Regulatory Sandbox Graduation appeared first on Coinpedia Fintech News
Singapore-based digital asset exchange DigiFT has received the green light from the Monetary Authority of Singapore (MAS) to operate collective investment schemes (CIS) and a secondary-market trading platform. This marks a significant milestone for the exchange, which has been operating in MAS’ FinTech Regulatory Sandbox since 2020.
DigiFT’s CMS license empowers it to offer a comprehensive range of investment products and services to both institutional and retail investors. Meanwhile, its RMO license grants it the authority to operate a secondary-market trading platform for digital assets. DigiFT’s innovative AMM mechanism will facilitate price discovery and enhance liquidity for digital assets.
Offering Secondary Trading Liquidity for Security Tokens
Now, DigiFT’s platform will offer secondary trading liquidity for security tokens backed by real-world assets such as bonds and equities. This means that investors can subscribe, trade, and redeem on-chain assets using fiat currency or stablecoins. DigiFT’s founder and CEO, Henry Zhang, stated that the exchange’s recognition from MAS comes after a rigorous process that saw it go through the central bank’s FinTech Regulatory Sandbox.
MAS’s Approach to Crypto Space
MAS has been working to find a balance between innovation and regulation in the crypto space. Recently, MAS Managing Director Ravi Menon said that cryptocurrencies have failed the test of digital money. However, he also highlighted ways in which blockchain technology could be used beyond crypto speculation. DigiFT’s recognition from MAS is a significant milestone for the exchange and 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 is designed to observe innovative business models in a controlled environment. Only those who graduate from the sandbox receive full licenses. DigiFT’s AMM mechanism is unique as it is the first of its kind to be admitted to the sandbox.
“DigiFT is the first exchange with an automatic market-making mechanism to have been admitted into the MAS FinTech Regulatory Sandbox.”
Henry Zhang (Founder)
DigiFT’s Future Endeavors
As a regulated exchange on the public blockchain with an AMM mechanism for secondary trading, DigiFT aims to push the boundaries of innovation further, including tokenizing real-world assets.
In summary, the DigiFT’s authorization from MAS is a significant development for the Singaporean crypto ecosystem and exchange’s focus on security tokens and real-world assets is in line with MAS’s regulatory approach.
Filed under: Bitcoin - @ December 5, 2023 6:14 am