Calvin Cheng, a former nominated Member of Parliament, is set to launch a cryptocurrency exchange in Singapore, at a time when regulators are discouraging investments in digital currencies.
Initially launched for invited users on 9 April, the AlphaBit CryptoCurrency Exchange (ABCC) is slated to open to the public on 28 April.
According to AlphaBit's website, the exchange is depositing 0.001 bitcoins, currently equivalent to $6.79, into registered accounts as a promotional offer.
ABCC is reportedly the first crypto exchange in the world to offer commission-free trading for cryptocurrency traders.
It follows the traditional business models of e-commerce sites, where users enjoy the benefits of incurring no transaction fees, AlphaBit said, adding that the exchange will instead charge the cryptocurrency issuers.
AlphaBit counts high-net-worth investors from across the region within its client base. To start the exchange, Cheng pooled partners and investors from across the region, a spokesperson told Citywire Asia.
The executive was a nominated Member of Parliament in the Eleventh Parliament of Singapore, from 2006 to 2011.
He runs a Shanghai-based online corporate training platform, Retech Group, which was listed on the Australian stock exchange in 2017.
Cheng is also the executive director of Lumina-Looque International, a media company with offices in Singapore, Malaysia and China.
He is trying to tap into the current wave of cryptocurrency investments as well as the growing interest in blockchain technology.
‘As the industry matures, these blockchain projects need real world applications which generate real social value,’ said Cheng.
‘I am also cognizant of the fact that the blockchain and cryptocurrency industry is still in its early stages, and we are definitely willing to engage with government agencies across the world to explore a proper regulatory framework to govern and grow this exciting financial frontier,’ he added.