Cryptocurrency Exchange Planned By South African Asset Management Firm Sygniabr>
Sygnia, a South African investment management company, is planning to launch a cryptocurrency exchange later this year.
Based in Cape Town, Sygnia provides investment management and administration services to institutional and retail clients primarily in South Africa. It offers multi-manager funds, index tracking funds, exchange traded funds, funds of South African hedge funds, stockbroking services, and a range of savings products. It employs 175 people, has over 600 institutional clients, 6,000 individual clients, and manages approximately $14.7 billion.
The company said the new crypto exchange, called SygniaCoin, will be backed by an international infrastructure, well-designed custody, and integration with standard savings products. The platform will allow users to hold cryptocurrencies in their Sygnia accounts alongside their other investments.
“We aim to launch SygniaCoin, a cryptocurrency exchange, in the third quarter of 2018,” said Magda Wierzycka, the chief executive officer of Sygnia. “The cryptocurrency market is evolving at a rapid pace internationally and domestically, and is attracting both domestic and international flows.”
Wierzycka said that SygniaCoin’s polices and protocols will be based on New York’s BitLicense to “ensure the highest levels of integrity and security for clients.”
Last month, the South African Revenue Service (SARS) issued an official statement on the tax treatment of cryptocurrencies, saying that normal tax rules will continue to apply to digital assets. Wierzycka acknowledged the move and said that she expects the government to establish more robust guidelines in the future.
In addition to a crypto exchange platform, Sygnia is also planning to create a fund that will invest in a range of cryptocurrencies on behalf of investors.