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Singapore’s latest crypto-exchange scoops $1m seed funding from Fatfish

Singapore’s latest crypto-exchange scoops $1m seed funding from Fatfish

Singapore’s latest crypto-exchange scoops $1m seed funding from Fatfish
November 29
03:34 2017

Photo credit: krunja / 123RF

A new cryptocurrency exchange set to be launched in Singapore has raised US$1 million in seed capital from Australia’s Fatfish Internet Group.

Kryptos-X was founded by Tony Mackay, the Australian entrepreneur behind Chi-X Global, a network of alternative stock trading platforms.

Mackay and his team have chosen to situate the startup in Singapore as they consider it “a well-regulated environment” with scope for additional players to enter the market, according to a press release.

Coinhako and FYB-SG are among the Singapore-based companies currently operating cryptocurrency exchanges in the country, while a number of others – such as Luno and Quoine – also have a local presence. Several foreign players, including Coinbase, are also accessible to Singaporeans.

The electronic marketplace… will not need to be regulated in accordance with the policy of MAS.

Kryptos-X said in the statement that it is “being established as an electronic marketplace for high-volume and high-frequency trading of bitcoin and other major virtual currencies.” It will “initially offer services in Singapore in accordance with the Singaporean regulatory framework for digital token offerings,” though it expects to expand to other jurisdictions in the future.

The Monetary Authority of Singapore (MAS) recently published a paper offering “general guidance” on the regulation of digital token sales – otherwise known as initial coin offerings (ICOs) – where businesses sell their own cryptocurrencies to raise funds.

In its paper, MAS stressed that digital tokens it determines to possess characteristics of capital market products – such as equity shares, debt instruments, or units in collective investment schemes – will fall under the purview of Singapore’s Securities and Futures Act (SFA).

See: Singapore to regulate ICOs that resemble equity and debt offerings

Kryptos-X claimed in its statement that it will “deal exclusively with blockchain technology-based digital tokens and cryptocurrencies that do not carry features of securities nor collective investment schemes… The electronic marketplace accordingly will not need to be regulated in accordance with the policy of [MAS].”

However, it also said that it may engage in the offering of tokens that resemble security interests in the future. Another Fatfish portfolio company, SmartFunding, holds a capital market services license which may allow it to trade such tokens under Singapore law should the the two enter into a partnership.

Kryptos-X is expected to launch within the next three months. Of the US$1 million from Fatfish, 40 percent will go towards hiring team members, with another 40 percent devoted to building software. The remaining 20 percent will cover incidental set-up costs.

The investment deal will see Kryptos-X and Fatfish form a joint venture, of which Fatfish will own a stake equivalent to 27 percent of total voting shares.

Converted from Australian dollar. Rate: US$1 = AU$1.32.

source : techinasia

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