Crypto exchange Blockchain.com has received a payments license from the Monetary Authority of Singapore (MAS), granting the platform the ability to offer digital payment token services to institutional and accredited investors. The license, which was granted on August 1, marks a significant milestone for Blockchain.com, as it enables the exchange to operate as a major payment institution in Singapore.
The approval from MAS comes after Blockchain.com received in-principal approval from the central bank in September of last year. With the full license now in hand, Blockchain.com joins a list of twelve digital payment token service providers in Singapore, including prominent names such as Circle, Independent Reserve, Paxos, Revolut, and DBS Vickers. This signifies the growing importance and influence of the cryptocurrency industry in Singapore, as more companies seek to establish a presence in the country.
MAS has been actively supporting the growth of the cryptocurrency and fintech sectors in Singapore. In June, the bank granted in-principal approval for an MPI license to Ripple, a blockchain-based payments firm, allowing them to offer crypto services. Circle, the issuer of USD Coin (USDC), also received its MPI license in June, seven months after receiving in-principal approval. These developments highlight the regulatory environment in Singapore, which aims to provide a supportive framework for crypto companies while ensuring customer protections are in place.
Singapore has been positioning itself as a crypto hub, with ongoing commitments to foster innovation and provide financial support to the industry. On August 7, MAS announced that it would commit $112 million to support the financial technology sector, including those involved in Web3. This funding commitment demonstrates the government’s dedication to promoting technological advancements and attracting business investments in the cryptocurrency space.
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In addition to the financial support, MAS has also introduced new regulations aimed at increasing customer protections in the crypto industry. In July, the bank implemented rules that require crypto service providers to hold customer funds in a statutory trust by the end of the year. Furthermore, MAS is working on proposals to restrict crypto providers from facilitating lending or staking of retail customer assets. These measures indicate the bank’s commitment to ensuring the integrity and security of the cryptocurrency market in Singapore.
The growth of the cryptocurrency industry in Singapore is evident in the amount of funding received by local crypto firms. According to a report by Galaxy Digital, Singapore-based crypto companies ranked third in terms of funding received in Q2 2022, trailing behind the United States and the United Kingdom. This data highlights the attractiveness of Singapore as a destination for crypto startups and investors, showcasing the country’s favorable regulatory environment and supportive infrastructure.
Overall, the granting of the payments license to Blockchain.com by MAS solidifies Singapore’s position as a leading hub for cryptocurrency and fintech innovation. The continued support from the central bank, in the form of funding commitments and regulatory measures, ensures that the industry can thrive while maintaining the necessary safeguards for investors and customers. As more companies and investors flock to Singapore, the country is poised to play a significant role in shaping the future of the global cryptocurrency market.
