AsiaNext receives provisional license to offer digital currency services in Singapore

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AsiaNext, a joint venture between Switzerland’s stock exchange SIX and SBI Digital Asset Holdings, has secured a provisional license to provide digital currency services in Singapore.

The company made the announcement in a LinkedIn post, stating the grant of a Capital Markets Services (CMS) license by the Monetary Authority of Singapore (MAS). According to Singapore’s rules, firms dabbling in capital market products, custodial services, and product financing are expected to hold a CMS license.

AsiaNext currently nurses ambitions to provide digital currency trading and custody services for institutional clients in Singapore, with the new license bringing the firm closer to its goal. Given the plethora of permits to be attained in Singapore’s highly regulated market, AsiaNext is opting to focus on digital asset derivatives as the first step of its plan.

“This milestone marks a significant achievement for our company and is a testament to our commitment to excellence and rigorous regulatory compliance in the digital asset industry,” read the LinkedIn post. “We remain focused on delivering exceptional value, driving industry innovation, and fostering long-lasting relationships.”

AsiaNext stated that it would leverage the experiences of its parent companies to offer innovative offerings to investors in Singapore. SIX and SBI Digital Asset Holdings have emerged as key players in the digital currency space, with SIX Digital Exchange launching to critical acclaim in 2021.

In 2022, SBI launched its Osaka Digital Digital exchange with additional plans to launch a secondary market for distributed ledger technology-based security tokens. SBI and SIX’s plan to float AxiaNext began in 2020, opting to focus on Southeast Asia by offering digital assets and security tokens.

“As the operator of financial market infrastructure in both Switzerland and Spain, SIX has significant experience in delivering trusted and secure capabilities to institutional capital markets, and we look forward to bringing the best of SIX to our partnership with SBI in Asia which we see as a strategically important region for growth,” remarked Thomas Zeeb, an executive at SIX.

Still reeling from the fallout of 2022

Singapore bore most of the brunt following the multiple implosions that plagued the digital currency industry. Investors saw their fortunes decimated following the collapse of Three Arrows Capital (3AC), Zipmex, Celsius, Terraform Labs, and FTX as regulators warned users of the risks associated with digital assets.

“The ongoing turmoil in the crypto industry serves as a reminder of the huge risks of dealing in cryptocurrencies,” said the central bank. “As MAS has repeatedly stated, there is no protection for customers who deal in cryptocurrencies. They can lose all their money.”

Singapore’s regulators are pushing for a ban on leverage for digital asset trading to mitigate investor losses while mulling similar moves for referral bonuses and airdrops.

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