Landmark Licensing in Singapore’s Blockchain Sphere
DigiFT, an Ethereum-based digital assets exchange, has achieved a significant regulatory milestone. The Monetary Authority of Singapore has granted DigiFT a Capital Market Services (CMS) license and recognized it as a Recognized Market Operator (RMO). This development, as reported on Nov. 5, positions DigiFT at the forefront of regulated blockchain activities in Singapore.
CMS License and RMO Recognition: Expanding DigiFT’s Capabilities
The CMS license enables DigiFT to engage in regulated activities involving securities and collective investment scheme (CIS) units within Singapore. It also empowers the platform to facilitate the issuance of security tokens. Additionally, the RMO recognition allows DigiFT to manage a public blockchain-based secondary market for trading these tokens.
A Pivotal Step in Shaping Future Capital Markets
DigiFT has emphasized that acquiring these regulatory approvals is not only a reflection of its commitment to compliance with regulations but also a crucial step in influencing the evolution of future capital markets. The exchange seeks to integrate blockchain technology with traditional financial methods to realize this vision.
Innovations at the Intersection of Finance and Blockchain
Henry Zhang, the founder and CEO of DigiFT, commented on the achievement: “Securing both the CMS licence and RMO recognition is a significant milestone in our journey to enable regulated access to financial opportunities on-chain. As the first exchange on the public blockchain to use an Automated Market Making (AMM) mechanism for secondary trading, we will continue to explore innovations at the juncture of finance and blockchain technology.”
Focus on Tokenization of Real-World Assets
DigiFT’s primary focus is on tokenizing real-world assets and making them accessible on-chain. Established in 2021, the platform participated in the Singapore Fintech Regulatory Sandbox in June 2022, where it was the first to use an AMM mechanism in the sandbox for dealing in capital market products. This involved facilitating the issuance of security tokens and operating a market for their secondary trading.
Singapore’s Emergence as a Key Hub for Blockchain Industry
Over the past year, Singapore has gained prominence as a notable hub for the blockchain industry. The country has been proactive in introducing new regulations aimed at safeguarding its citizens from the risks associated with this emerging sector. DigiFT’s recent regulatory achievements align with Singapore’s broader efforts to establish a regulated, innovative, and safe blockchain and cryptocurrency environment.