Following our earlier story on the launch of FundedX, a private exchange to trade shares of high growth startups, FundedHere told in a statement to Fintech News Singapore that they do not possess the necessary licensing to carry the activity.
On Thursday morning, the company issued a clarification that FundedX triggered a response from the Monetary Authority of Singapore (MAS) stating that they are not permitted to label themselves as private exchange, instead describing themselves as a matching platform.
The move to label themselves as such, is likely to avoid falling under the existing licensing regimes by the regulators.
However, immediately on the same day, FundedHere retracted that statement adding that the activity that they wish to engage falls squarely within the regulatory scope of the Monetary Authority of Singapore.
This saga should serve as a cautionary tale for all fintech companies that this space, although ripe for disruption, it is highly regulated and entrepreneurs would be wise seek legal counsel before making any major announcements.