Sparrow operates with trust and transparency
In light of the recent news on the ‘liquidity crunch’ afflicting the cryptocurrency industry, Sparrow seeks to bring clarity to our business operations. We hope that by doing so, we would be able to address any uncertainties and provide reassurance to our valued clients during this turbulent period.
With a Major Payment Institution (MPI) licence from the Monetary Authority of Singapore (MAS) to provide Digital Payment Token (DPT) services in Singapore under the Payment Services (PS) Act, we take pride in delivering bespoke digital asset solutions to our clients with a prudent risk management framework while adhering to regulatory compliance requirements.
We would like to clarify that Sparrow does not have exposure to FTX and Alameda Research. We have no material exposure to FTX’s native FTT token and currently do not have lending relationships with FTX and Alameda Research. Sparrow continues to provide undisrupted quality service to our clients and all our products and services remain fully operational; including deposits, withdrawals, buying, and selling of digital asset products.
These are the steps we take that demonstrate we put clients at the heart of our business:
- We do not perform leverage trading. We do not use clients’ funds to make trades in order to maximize profits. We have always kept client investments separate from our company assets.
- We are committed to regulatory compliance and reporting, including the appointment of an international accounting firm as our statutory auditor. This validates the accuracy of our financial position which complies with regulatory standards.
- We frequently utilize technology to enhance and optimize trade operations. This makes it possible for our clients to access market liquidity under all conditions.
- We work with BitGo, a market-leading custody provider, to securely store digital assets. This ensures that clients’ digital assets are safeguarded with a secure architecture and a high degree of compliance.
Sparrow operates with a great deal of trust and transparency. We have always put our clients first and will continue to do so.
Our hearts go out to all those affected during this difficult time. Industry players will have to work hard together to rebuild the trust that has been eroded and make this a more robust marketplace.
Risk Warning on Digital Payment Token Services:
The Monetary Authority of Singapore (MAS) requires us to provide this risk warning to you as a customer of a Digital Payment Token (DPT) service provider. Before you pay your DPT service provider any money or DPT, you should be aware of the following.
1.Your DPT service provider is licensed by MAS to provide DPT services. Please note that this does not mean you will be able to recover all the money or DPTs you paid to your DPT service provider if your DPT service provider’s business fails.
2.You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact is transferred or held by your DPT service provider.
3.You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
4.You should be aware that your DPT service provider, as part of its licence to provide DPT services, may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.
The information provided here is for informational purposes only and is not to be construed as a recommendation or advice to any prospective investor in relation to any legal, tax, financial investment or any other matters. You should consult with an attorney or other professional advisors to determine what may be best for your individual needs.
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To the maximum extent permitted by law, Sparrow shall not be liable in the event of any information, commentary, analysis, opinions, advice and/or recommendations proving to be inaccurate, incomplete or unreliable, or result in any decisions regarding our content or other losses.
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