There is an increasing demand for a custodian-neutral ecosystem in the rapidly evolving world of digital assets. This means that traditional financial institutions should not be restricted to investing only in certain asset classes. Instead, they should be able to invest in any crypto or crypto-related fund as long as it complies with the necessary regulatory standards.
To facilitate this change, the Securities and Futures Authority of Singapore (SFA) has recently launched its Cryptocurrency Disclosure platform (SGX CDP account). With this new service, anyone who is a resident of Singapore can now operate an account that stores crypto assets for their clients. In this article, we will explore everything you need to know about opening an SGVCDP account and investing in cryptocurrencies through it.
What is a CDP Account Singapore?
A CDP account is a fund that allows clients to own shares in a portfolio of underlying assets. In the cryptocurrency space, it generally refers to the ability to invest in funds that hold underlying assets such as cryptocurrencies, commodities, or financial assets. Some of the main benefits of a CDP account include the following:
- Access to a wide range of assets.
- The SFA-approved fund houses offer a wide range of assets like equities, cash, real estate, and cryptocurrencies. You can choose to hold investments like stocks, real estate, or bonds. Efficient investment strategy.
- The investment selection and the asset allocation strategy are made by professional fund managers who have been contracted by the fund house. Therefore, you can be confident that your money is being managed according to best practices.
- Security. The fund providers are audited by SFC-approved auditors. Therefore, your funds are under a secure system where they can only be accessed by authorized users.
What is a CDP account for?
A CDP account is an investment product that allows you to own shares in underlying assets. These assets can be stocks, bonds, real estate, or other financial assets. The main advantages of a CDP account include the following:
- You can access a wide range of assets.
You can decide what types of investments you want to include in your portfolio and how much you want to invest. This ensures that you are investing your funds according to your investment strategy. Efficient investment strategy.
- You can choose to have your funds.
Your funds can be managed by professional fund managers who have been contracted by the fund house. This ensures that your money is being managed according to the best practices.
- Security.
The fund providers are audited by SFC-approved auditors. This ensures that your funds are under a secure system where they can only be accessed by authorized users.
How do I access my CDP account?
A SGX CDP account can be accessed by all authorized users who have been approved by the fund house.
How to Open an SGX CDP Account
Once you have opened your CDP account, you will be able to: – View your investment details – This includes the value of your share, the underlying asset, and the profit or loss of the fund. – Make withdrawals – You can withdraw your funds by logging in to your account and choosing the ‘Withdraw Funds’ option. – Make deposits – You can make a deposit by logging in to your account and choosing the ‘Deposit Funds’ option. – Transfer account ownership – This allows you to transfer the ownership of your account to another person who is also an authorized user. – Close your account – You can close your account at any time and withdraw all the funds from the account.
How can I open a CDP in Singapore?
To open a CDP account, you should complete the following steps: – Visit the SFC-approved fund house where you want to open your SGX CDP account with. – You will be directed to a sign-in page where you will have to create an account with the fund house. Once you have signed up, you will be able to access your new account. – Once you have logged in to your account, you will be able to view your new account details. – You can also view your new account’s investment details after logging in. – You can also change the details of your account if you want.
How do I check my CDP share?
There are two ways to check your CDP shares. You can either login to your account and check your account details or you can contact the fund house and request the share details. As per the rules, you can only withdraw funds from your CDP account if you have at least 2% of the share in your account. You can also cancel your CDP account at any time.
Benefits of Opening an SGX CDP Account
There are many benefits of opening an SGX CDP account, some of which are:
- Access to a wide range of assets.
The SFA-approved fund houses offer a wide range of assets like equities, cash, real estate, and cryptocurrencies. You can choose to hold investments like stocks, real estate, or bonds.
- Efficient investment strategy
The investment selection and the asset allocation strategy are done by professional fund managers who have been contracted by the fund house. Therefore, you can be confident that your money is being managed according to best practices.
- Security
The fund providers are audited by SFC-approved auditors. This ensures that your funds are under a secure system where they can only be accessed by authorized users.
- Income received on deposit.
Generally, deposit interest is given as a reward. Hence, you can get a regular income from your SDC account if you decide to keep it idle.
- Security deposit refund
If the fund house goes bankrupt, you can get your money back from the Security Deposit Refund Fund.
- Tax advantage
Under the rules, you are allowed to trade your CDP shares once a week without paying taxes. – Fund withdrawal for specific events – You can withdraw your funds for specific events like the expiry of the investment, share buy-back, etc.
How To Invest in SGX CDP Accounts
There are several ways to invest in SGX CDP accounts. You can either directly invest in the fund or you can go through a fund manager and make a fund investment. You can also use a fund manager to invest in any other fund that they manage.
How do I check my CDP shares?
There are two ways to check your CDP shares. You can either login to your account and check your account details or you can contact the fund house and request the share details. As per the rules, you can only withdraw funds from your CDP account if you have at least 2% of the share in your account. You can also cancel your CDP account at any time.
Conclusion
A CDP account can easily be created, and investing in one can be a great financial plan. Depending on your financial goals and the life you want, your investment may be large or small. We advise you to pay special heed to the information provided in this article as a guide through your investment process. And in that same light, don’t be scared to get your CDP account set up. Good luck!