Singapore opening up to crypto with first three licenses approved

singapore opens to crypto
Image by eamesBot | Bigstockphoto

The Monetary Authority of Singapore (MAS) has issued three in-principle approvals for digital payment token (DPT) licenses, which allow companies to offer crypto services.

MAS did not disclose the names of the applicants, but The Business Times reports that among the applicants are prominent crypto exchange, trading platform Genesis and Sparrow Exchange (through its entity Sparrowtech).

Deputy Prime Minister Heng Swee Keat announced on June 22 that licenses are in line with Singapore’s drive to develop its blockchain and digital asset industry.

“We are committed to partnering innovative and responsible players to grow the Web 3.0 ecosystem and community in Singapore,” he said in a recorded speech played at the Point Zero Forum in Switzerland.

Over the last year, Singapore has moved from a potential crypto hub to a more uncertain one, with some in the industry feeling frustrated over the process of obtaining a digital currency license.

Binance, for instance, pulled the plug on its plans to set up a global headquarters in the city-state last year and instead opened a Philippine office to introduce its ecosystem in the region.

Last month, Singapore regulators also began looking even more closely at the cryptocurrency industry as a whole after the dramatic crash of stablecoin Terra. The recent sell-off in tech stocks also played a role in Terra’s market cap plummeting from $41 billion to just $6.6 million.

This sharp decline has raised concerns about the stability of stablecoins, and MAS is monitoring the situation closely. It has also urged investors to be cautious when dealing in digital assets.

But with the latest development in issuing DPT licenses, it appears that Singapore is becoming more open to working with the ‘right’ crypto companies.

Recently, Singapore private securities platform ADDX became the first financial firm in the city-state to recognize cryptocurrency in their assessment of assets of high-net-worth clients. ADDX is backed by Singapore Exchange.

“Cryptocurrencies are here to stay. They no longer exist only on the fringes of wealth and investment conversations,” said ADDX CEO Oi-Yee Choo.

Be the first to comment

What do you think?

This site uses Akismet to reduce spam. Learn how your comment data is processed.