Although the South African asset management group reported a six months’ profit close to $6 million, Sygnia, an asset management firm, is looking to further extend its profit margins. But this time, by getting into the cryptocurrency space. The firm is already set to open a cryptocurrency exchange before the end of 2018.
Its CEO, Magda Wierzycka, while speaking during the firm’s 2018/2019 strategy meeting, indicated that, for the last 6 months, they have been on a mission to search for alternatives that will help Sygnia to align itself with the dynamic digital future.
“We aim to launch SygniaCoin, a cryptocurrency exchange, in the third quarter of 2018, With its fintech focus, Sygnia is well-positioned to become the first major financial services institution to embrace cryptocurrencies and to offer investors a secure trading and execution platform backed by an international infrastructure, well-designed custody and integration with standard savings products” Magda said, adding that “The cryptocurrency market is evolving at a rapid pace internationally and domestically, and is attracting both domestic and international flows”
Regarding the security and international standards, Wierzycka confirmed that they will employ protocols and policies identical to those used by cryptocurrency exchanges in the United States, specifically in the New York.
According to Magda, Sygnia will “also be able to offer investors the option of holding cryptocurrencies on the Sygnia Alchemy administration portal, alongside their investments through the Sygnia LISP and in SURF”
In South Africa, digital currencies are recognized as a medium of exchange and profits from trading digital assets are taxable.
South Africa is one of the few countries in the African continent that has openly embraced virtual currencies. As reported earlier by cryptolinenews, the virtual currency investors in South Africa have experienced a good share of the highs and lows when trading in digital money.
As more traditional firms get into cryptocurrency, do you think Sygnia’s move to open a cryptocurrency exchange was influenced by fear of missing out on the digital revolution?
Let us know your thoughts in the comments section below.