Fatfish Internet Group or FFG has announced that they will be entering a legally binding term sheet. The sheet commits the company to investing one million USD of seed capital into Kryptos-X.
The new currency is a newly developed cryptocurrency in early stages of start-up. The company was founded by the wealthy Australian Entrepreneur Tony Mackay. Mr. Mackay was the CEO, Chairman and Founder of Chi-X Europe as well as Global. They are two alt-stock companies for trading across multiple international marketplaces.
Apparently, after signing the agreement, the team at Kryptos-X stated that the preparatory steps are set to start immediately. The entire process is said to take about three months at which time the new cryptocurrency will be ready for operation.
The new currency is being developed as an electronic marketplace that will focus primarily on high-volume and high-frequency trading of the major cryptocurrencies. For example, Bitcoin will be one of the main currencies traded on the market. They have decided to use Singapore as their place of focused exchange since it’s highly regulated and already has a couple of crypto exchanges running. The two current exchanges in Singapore are Coinhacko and FYB-SG.
As of now, Tony Mackay and FFG are proposed to enter into a joint venture arrangement. Apparently, FFG is going to be issued with preferred shares distributed in the capital of the holding company. The company owns and operates the electronic exchange and marketplace that it will all be traded on. The equivalent amount of 27% of FFG’s interest is said to decide the total shares ready for voting on the day of issue. They will closely follow the same issue of preferred shares like FFG does.
FFG will then be entitled to appoint two new directors on the board of the new cryptocurrency company, Krypto-X. They have already invited Tony Mackay to sit on the board, via a Non-Executive Director position after the transaction has been completed. They are said to be entering a formal joint venture in accordance to industry standard terms and conditions.
FFG’s activities determine the investments into Krypto-X so they are consistent with the same activities seen in many other internet venture builders and incubators. FFG stock has risen over 50% since the announcement of the joint venture apparently. This is according to the numbers on the ASX trading platform.
How Kryptos-X Will Operate In A Regulatory Environment
Apparently, the electronic Marketplace will be based in Singapore initially. It will be open to SG residents and citizens. They are using a specific strategy to expand into different regulatory frames and jurisdictions where the trading of cryptocurrency is allowed.
The exchanges will use blockchain based technology exclusively for trading the digital-assets and cryptocurrencies. They are specifically for currencies that don’t already feature security measures on collective investment schemes or CIS. While working, they will operate to be compliant with the Singapore Securities and Futures Act or SFA. And the exchange is designed to regulated with authority by the Monetary Auhority of Singapore or MAS. They apparently released an announcement called “A Guide to Digital Token Offerings” that was published on November 14th, 2017.
More so on this, MAS is said to make it possible for digital tokens with features on CIS to be used as a primary platform on Kryptos-X. This will only be as long as the currency has obtained a Capital Market Service license and the tokens that are offered according to the exemptions under the Smart Funding Pte. Ltd and prospectus requirements. SFA is apparently an investee of FFG and already holds a CMS license.
This means that it is likely that Kryptos-X will potentially partner with SFA as long as they are subject to the regulations set by Smart Funding Pte. Ltd. For this to happen, Kryptos-X would absolutely have to comply with all policies that are relevant to MAS as well as establish new payment gateways and counter financing terrorism requirements. The MAS will have to specifically address AML/CFT requirements while new payment gateways are being setup. They will have to be in direct relation to dealing with any cryptocurrencies that Kryptos-X will be dealing with.
Apparently, FFG has already sought sound legal advice related to regulatory requirements when it comes to operating the exchange in SG. They’ve also received legal advice on preventing Australian companies from making any investments into the Singapore based exchange.
Preparing For The Kryptos-X Exchange
FFG has notes on Kryptos-X Exchange in regard to it being in early stages of development. They are working closely with the company to prepare for the steps below:
- Develop the software requirements
- Point out specific third party that supplies the software infrastructure for Kryptos-X
- Fully integrate relevant KY/CFT requirements to be in compliance with Singapore
- Identify and find financial institutions to partner with that will allow new payment methods to be used for Kryptos-X
- Hire responsible personnel to manage the company
- Find accurate partners who have service providers that can operate as clearinghouses
The proposed investment from FFG will be released over the three-month period from the sign off date on a definite investment agreement between Kryptos-X and FFG. Kryptos-X will use the investment in the following way:
- 40% – for hiring Kryptos-X currency
- 40% – to use for building the software system required to run Kryptos-X
- 20% – for setup cost to build the operation.
Kryptos -X’s operation on a daily basis will be led by Tony Mackay and will start with four employees. The four employees will be used to help with the development of the platform. The FFG side of the team will be headed by Kin Way Lau, current CEO of the company. There will also be three other FFG employees on the team as well.
FFG’s current management believes that the investment is being completed in the most strategic way possible. And that Kryptos-X will be an important piece of FFG’s entry into the Blockchain and crypto industry. They will use the unique partnership to build a model that will speed up the growth of Kryptos-X.
Kin Wai Lau is a respected and recognized entrepreneur in the tech center focused in Southeast Asia. He found his first company when he was only 23 year old and has since then, taken three separate companies public.