What are digital assets?
Digital assets, or its more commonly-known subset — cryptocurrencies — are a form of financial products. Digital assets represent value for a service which will be developed through blockchain technology. Assets can be bought, sold, traded or stored. In the form of cryptocurrencies, digital assets can be tracked on a blockchain which is a decentralised ledger for everyone to see.
Bitcoin is the most popular digital asset as it was the first cryptocurrency in existence. Since the beginning, it was seen as a store of value and a technology that can change the way people transact with each other. The blockchain technology enables removal of the middleman to create a secure, trusted peer to peer network. Since the introduction of Bitcoin, the digital asset has proved to be the best performing return of investment compared to every available stock and share. This is undoubtedly one of the main reasons why people continue to invest in Bitcoin.
In many countries, digital currencies have different laws surrounding their use. The trading of digital currencies is legal, but many governments will generally intersect with banking or remittance services whenever they are exchanged for fiat currencies or visa versa. Therefore it is best to check with your local laws to understand any tax obligations you may have to report.
To increase the ease of purchasing Bitcoins and other major Altcoins, fiat to crypto pairings are created. However cryptoexchanges that wish to provide fiat to crypto pairings are required to apply for license based on the jurisdiction of each countries. Zipmex recently received the Thailand Digital Exchange License which allows us to provide exchange services for digital assets and cryptocurrencies. This means we are licensed to provide BTC/THB pairing for our Thailand users.
Zipmex also provide other fiat to crypto pairings such as BTC/IDR, BTC/SGD, BTC/USD and BTC/AUD. We are in the midst of applying for licenses in countries such as Indonesia and Singapore, where official laws on Digital Asset have been recently published by BAPPEBTI and MAS (the regulators of the countries). Since Zipmex has been in operation in these countries before the regulation came into effect, we are allowed to provisionally operate while waiting for our actual license. In Australia, Zipmex has registered and is regulated by AUSTRAC (Australian Transaction Reports and Analysis Centre).