Singapore-based crowdfunding platform FundedHere has stalled the launch of FundedX, a new private stock exchange to facilitate the trading of shares of high-growth startups and privately-held companies in Southeast Asia, because of licensing issues.
In a statement, the firm said FundedX will be required to be an approved exchange or a recognized market operator in order to operate.
“FundedX will refrain from operating until it has received the relevant authorisation to do so,” FundedHere said.
FundedHere earlier claimed that FundedX is not a private stock exchange and that the the platform is merely one where buyers and sellers can register their interests to buy or sell a particular company stock at the pre-determined price set by FundedX.
However, the company issued another clarification saying it has discovered “that it is factually incorrect to state that the business model that FundedX intends to engage in is licensed under FundedHere’s capital markets services license”.
A Monetary Authority of Singapore spokesman told the Business Times that an entity that operates a platform to facilitate secondary trading of securities is required to be an approved exchange or a recognised market operator under the Securities and Futures Act.
Established in 2016, FundedHere is Singapore’s first crowdfunding platform to offer both equity and debt deals for promising companies.
In a statement announcing FundedX early this week, FundedHere said it has already received interest from several investors, companies and shareholders throughout Southeast Asia to participate on the platform.
Last year, FundedHere raised a combined S$505,500 ($375,334) for two local startups including BEAM, which offers concierge warehousing and logistics solutions on a mobile app, and NephTech, a cloud-based solution to offer surveillance and management of chronic renal disease patients.