Coinhako’s update on recent crypto events

It has been reported that a major crypto exchange FTX and a trading firm Alameda Research experienced liquidity issues, resulting in their insolvency. Recent developments include a large crypto lender, Genesis, experiencing liquidity issues.

In light of this, we would like to assure you that Coinhako’s business and operations remain operational and unaffected by the aforementioned issues experienced by these crypto institutions.

This is primarily because we have not extended any loans to these institutions, and Coinhako does not facilitate any leverage trading on our platform. All trades with Coinhako are required to be pre-funded and/or fully collateralized which ensures that credit default risk (if any) is kept to an absolute minimum.

In May 2022, Coinhako was granted a Major Payment Institution (“MPI”) licence to provide Digital Payment Token services under the Payment Services Act 2019 in Singapore.  Given that Coinhako is a licensed and regulated institution headquartered in Singapore, Coinhako is already subject to periodic reporting requirements which covers reporting on its customer assets and liabilities.

Coinhako is also required as a licensed entity to have in place robust compliance policies, risk management frameworks, and to conduct periodic internal and external audits which would include audits on Coinhako’s off-chain assets and liabilities.

At Coinhako, we have always leaned into regulation and compliance in our approach towards managing our business. This stems primarily from the fact that the well-being and safety of all our users has always been and remains our top priority.

We thank all of you for your continued support. We’ll continue to work hard at Coinhako to ensure all users continue to enjoy a safe, reliable and seamless access into the crypto economy.