Regulatory authorities in Singapore have recently announced the approval of 1exchange, a security token exchange developed by CapBridge and Consensys. With this latest headline adding to a wave of regulatory support in Singapore throughout the past few months, Singapore is positioning itself to become a security token leader across Asia and perhaps, even beyond.
Singapore Authorities Approve a New Security Token Exchange
CapBridge, a global private capital platform, has just received approval by the Monetary Authority of Singapore (MAS) to operate a securities exchange. The new Singapore-based exchange, named 1exchange (1X), will officially launch as a Recognized Market Operator (RMO).
CapBridge, which initiated operations in 2015, has helped SMEs raise funds for the past three years through equity sales. They’ve helped companies raise more than $500 million in 2018 alone. Now, through 1exchange, they will compliantly offer investors the service of buying and selling capital markets’ newest revolution: security tokens.
Blockchain technology offers significant benefits when compared to the traditional securities sector. The added liquidity of security tokens is unheard-of in the traditional financial market. Additionally, security tokens provide companies with a means to raise capital while maintaining private status— the arduous and costly task of performing an IPO is entirely circumvented.
Johnson Chen, Founder and CEO of CapBridge, provided a statement following the recent regulatory approval:
“The CapBridge private capital platform has a track record of successfully helping global growth companies raise capital, and providing private investors access to such investment opportunities… Our holistic approach will enhance capital flow for growth companies and improve liquidity options for private investors, benefiting the wider capital market ecosystem in the process. We have been in close consultation with the MAS and deeply appreciate their support of our goal to contribute to a more vibrant Singapore private capital environment; as a fully-compliant and secure exchange platform, we will continue to work closely with MAS to uplift the capital ecosystem.”
What Country Provides the Best Legislation for Security Tokens?
The news of 1exchange’s approval comes as many perceive the larger cryptocurrency community as transitioning from Initial Coin Offerings (ICOs) to Security Token Offerings (STOs). For some, it’s the added benefits offered by security tokens, for others, it’s the regulatory peace of mind.
Concerning regulatory requirements, many see Malta as establishing the central hub of security tokens. The Maltese Parliament has been notably acting in drafting and implementing new legislation designed specifically for cryptocurrencies. In fact, they’ve provided the world’s first regulatory framework for cryptocurrencies.
However, Singapore is clearly taking a proactive approach as well, making recent headlines by combining FinTech, the blockchain, and regulatory compliance.
The MAS and Singapore Exchange (SGX) have recently collaborated to develop a blockchain agnostic prototype which drastically shortens settlement cycles.
In addition, SGX has recently invested in iSTOX, a developing Singapore-based security token exchange.
With the recent security token developments and regulatory support, Singapore is quickly rising to lead the security token front in Asia.
Whether they will expand beyond Asia and join the ranks of Malta as a publicized global pioneer, is yet to be seen.
What do you think about the launch of the new security token platform ‘1exchange’ in Singapore? Will the consistent support from the Monetary Authority of Singapore (MAS) lead the country to become an international hotspot for Security Token Offerings (STOs)? Let us know what you think in the comments below.
Image courtesy of CapBridge.