Fatfish reels in crypto deal; shares shoot up 54pc
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Tech investor Fatfish Internet has invested in a new cryptocurrency venture, sending investors into a frenzy.
The Asia-focused investor (ASX:FFG) put $1.28 million in Kryptos-X, a virtual currency exchange dreamed up by former Chi-X boss Tony Mackay.
Its shares bounced 54 per cent to 7.4c on Tuesday afternoon.
When it’s up and running in about two months, the exchange will let people trade any cryptocurrency, be it Bitcoin, Ethereum, or other digital tokens.
But first it’ll only be open to Singaporeans and Singapore residents in its home town.
Fatfish CEO Kin Wai Lau says they launched there because Singapore has a clearer regulatory stance on cryptocurrencies, but they’ll be looking at letting Australia into the fold “in the very near term”.
The Monetary Authority of Singapore (MAS) recently said any digital tokens deemed to be similar to capital market products such as equity shares, debt instruments, or units in collective investment schemes would fall under its regulatory powers.
Fatfish said in a statement it will only allow trading in currencies that don’t have any of those characteristics.
Singapore already has two local cryptoexchanges — Coinhako and FYB-SG. Foreign-owned exchanges such as Luno and Quoine also have a local presence.
Coinhako ran into problems in September when its bank temporarily shut down its accounts.
At the time co-founder Yusho Liu said the closure might be due to anti-money laundering rules and know-your-customer requirements. Neither Coinhako nor the bank would reveal the cause of the closure.
Bitcoin has doubled in price since October and is now nearing the $US10,000 mark.
The digital currency was selling at $US9847 ($12,942) on Tuesday night. Ethereum was at $US482.