Tokenize Xchange eyes institutional clients and safeguarding assets as priorities
The Business Times speaks to Hong Qi Yu, CEO and founder of Tokenize Xchange
THE digital asset ecosystem has grown spectacularly in recent years, driven by interest from both companies and individuals who value the underlying technology while eyeing the potential for capital appreciation.
Yet, speculative behaviour and risk in the industry has also meant regulators are scrutinising the industry even more than ever – with stricter frameworks being introduced for industry players.
Working with government regulatory bodies to abide by the protocols is something that companies need to do, said Hong Qi Yu, chief executive officer and founder of local crypto exchange platform Tokenize Xchange.
“We endorse their intervention to oversee what is all too often a chaotic industry,” he said, adding that regulators in Singapore and Malaysia have a “measured and sensible” approach to overseeing crypto.
“They understand the need to allow a certain level of freedom, so product innovation can emerge, whilst stepping in when needed to tighten the rules on certain practices,” Hong added.
Tokenize currently operates under exemption from the Monetary Authority of Singapore, where it has applied for a Digital Payment Token licence. In April 2020, it received “full approval” from Securities Commission Malaysia.
The company has also been adapting to the shifts in the industry. Earlier this year, it moved its focus from retail users to institutional investors.
The company is in its “final stage” of building Tokenize Premier, a separate platform from Tokenize Xchange that is designed for institutional investors to perform over-the-counter trades.
It has also been prioritising security and safeguarding of customer assets.
“Our platform has been created on the philosophy of both accountability and professional ethics,” Hong said, noting that the company conducts research into new protocols for safeguarding assets.
No crypto platform is 100 per cent immune from outside attacks, however implementing certain procedures and a mindset geared towards safety and security can help, Hong noted.
He acknowledged that the attraction of Bitcoin in recent years has been “speculative, like the tech stocks of the past”.
“My take is that this narrative will soon change with the uncertainty of the macro-economic outlook and the flight into safe heavens like gold and crypto,” he said.
He believes that the potential use case of the underlying technology behind cryptocurrencies lies in the Web3 space – an iteration of the World Wide Web which incorporates decentralisation, blockchain technologies and token-based economics – as well as in the metaverse.
“Our plan is to become the dominant player in the Web3 world in Asia,” Hong said.
For more stories, go to bt.sg/sff2022
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