The leading digital asset exchange – CryptoCom – received in-principle approval from the Monetary Authority of Singapore to provide a variety of payment services within the Asian city-state.
The regulator has also given the green light to two additional firms part of the crypto industry – Genesis and Sparrow – to offer similar services.
The MAS Said ‘Yes’
In a recent announcement, CryptoCom explained that the latest approval will enable the exchange to offer numerous settlement solutions within the Payment Services Act, including Digital Payment Token (DPT) services to Singaporean clients. Commenting on the license was Kris Marszalek – Co-Founder and CEO of the platform:
“The Monetary Authority of Singapore sets a high regulatory bar that cultivates innovation while protecting consumers, and their in-principle approval of our application reflects the trusted and secure platform we have worked diligently to build.”
He further described Singapore as a “flourishing market for fintech innovation” where cryptocurrencies and other technology could thrive.
CryptoCom has been severely affected by the recent crash of the cryptocurrency market. Earlier this month, the company said it plans to lay off 260 employees, or 5% of its total workforce. However, once the negative trends turn, CryptoCom “will be ready to dive and capture the next wave of growth,” Marszalek assured.
Apart from the exchange, the MAS gave its nod to the digital asset broker – Genesis – and the crypto trading venue – Sparrow. Just like CryptoCom, they will be able to provide DPT services in Singapore under a strict regulatory regime.
“We must continue to build trust through regulatory guardrails while encouraging innovation and realizing gains,” Heng Swee Keat – Singapore’s Deputy Prime Minister – stated.
The latest approvals took the number of cryptocurrency firms that have received “yes” from the MAS to 14. However, this is a small fraction of the 200 applicants that have sought the watchdog’s approval throughout the years.
Singapore Aiming to Become a Crypto Hub
Several months ago, Ravi Menon – the head of the MAS – outlined the watchdog’s ambitions to turn the city-state into a global center of the cryptocurrency industry. In his view, though, this goal could be achieved by applying comprehensive regulations to the sector.
Menon argued that criminals could use digital assets in their illegal activities, meaning that rules should be as “stringent” as possible.
Last month, Singapore’s top financial regulator joined forces with the local monetary industry to introduce “Project Guardian.” The initiative will be led by the largest domestic bank – DBS Bank – and the American corporation – JPMorgan Chase.
“Project Guardian” will investigate the potential use-cases of decentralized finance (DeFi) and asset tokenization and will double down on Singapore’s intentions to emerge as a cryptocurrency hub.