FundedHere steps back on launching FundedX amidst licensing issues

FundedX has yet to get an approval as an exchange or market operator.

Crowdfunding platform FundedHere stalled the launch of its private stock exchange FundedX amidst licensing issues as the platform requires an approval to be an exchange or market operator, an announcement revealed.

Also read: Crowdsourcing platform FundedHere launches matching platform for startups and private firms

FundedHere also retracted its statement issued on 1 August that FundedX is not a private stock exchange but a mere matching platform where buyers and sellers can register their interests to buy or sell a particular company stock at the pre-determined price set by FundedX.

"FundedHere wishes to retract its earlier clarification as it has discovered that it is factually incorrect to state that the business model that FundedX intends to engage in is licensed under FundedHere’s capital markets services license," the firm explained,

FundedHere revealed that several investors, companies and shareholders throughout Southeast Asia expressed interest to participate on the platform.

Upon operation, FundedX will allow legacy shareholders including ex-employees and early investors to monetize their returns whilst employees with stock options seeking partial liquidity can submit verification of ownership to participate in the exchange.