Singapore to Authorize Digital Payment Providers, Approves Crypto Exchange – Bitcoin News Regulations

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The Monetary Authority of Singapore (MAS) has informed several digital payment service providers that they will be licensed to operate in the city-state. The move, which comes after a crypto exchange was approved for a license, secures Singapore’s status as a crypto hub in Asia, according to industry watchers.

Digital payment service providers will be allowed to operate in Singapore

Singapore’s central banking authority has informed digital payment service providers that it will allow them to operate under its jurisdiction. The MAS told “several” of the 170 applicants that it was “ready to grant them payment service licenses”, provided they implement measures to meet its demands, the regulator confirmed at the South China Morning Post’s “This Week in Asia” edition. So far, two requests have been rejected and 30 others withdrawn for non-compliance with anti-money laundering standards.

Singapore Monetary Authority.

The news comes after the Australian cryptocurrency exchange Independent Reserve announced earlier this week that it had received “in principle approval” from the Monetary Authority of Singapore for a license as a regulated token service provider. digital payment. The trading platform said in a statement that it was among the first virtual asset service providers to receive such approval in the city.

MAS’s latest announcement was greeted with enthusiasm by experts involved in the crypto space, the Hong Kong-based daily noted. Grace Chong, a lawyer at Simmons & Simmons and financial technology and regulatory advisor in Singapore, called the move “momentary” and “timely.” Banks and asset managers have expanded their digital asset offerings, she noted, noting:

Technological change is disrupting finance and we are seeing a strong institutional interest in digital assets.

MAS to Attract Crypto Firms to Asian Crypto Hub

According to Chong’s estimates, 90 digital payment token service providers were already operating under exemption in Singapore. In March 2020, MAS granted a license exemption to a number of crypto companies under its new payment services law, as reported by Bitcoin.com News. It has published a list of exempt entities, including well-known names such as Binance, Coinbase, Upbit, and Wirex.

MAS’s decision to move towards permanent licenses “gives certainty to many legitimate crypto companies that have established operations here,” noted Kenneth Bok, Managing Director of Blocks Advisory Blocks. Jason Davis, associate professor of entrepreneurship and family business at Insead, described it as a “prudent next step” towards financial innovation. Davis expects more crypto exchanges to seek approval to operate in Singapore:

Allowing cryptocurrency exchanges to function in Singapore is an important part of the country’s strategy to be friendly with businesses using new types of digital assets … Exchanges may only be the first step in the development of a thriving crypto-ecosystem in the heart of Southeast Asia. .

Industry watchers expect the development to increase the number of various crypto companies setting up shop in Singapore and strengthen its status as a leading Asian crypto-financial center. The city’s regional rival, Hong Kong, for example, has opted for stricter regulatory policies.

According to Sumit Agarwal, professor of finance and economics at the National University of Singapore, Beijing’s growing influence over Hong Kong “is creating fear in the minds of investors” as the crackdown on mining and trade crypto in China continues. “People are realizing that regulators in Singapore are more open to experimentation because it’s a small economy and decisions can be made faster,” Agarwal said.

Do you agree that Singapore is emerging as a major crypto destination in Asia? Let us know in the comments section below.

Tags in this story Authority, authorization, Central bank, central banking authority, China, Crypto, crypto exchanges, crypto hub, crypto payments, Cryptocurrencies, Cryptocurrency, cryptos, Digital assets, digital payments, experts, Hong Kong, License , licenses, MAS, observers, payment providers, Regulations, Singapore

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