Crypto Exchange Upbit Acquires Trading License in Singapore
Upbit is a crypto trading platform based out of South Korea. The firm recently received a Major Payment Institution License in Singapore. The official website of Upbit posted an update to confirm that the Monetary Authority of Singapore (MAS) has issued the firm an MPI license for the Singaporean branch. On this account, the wing will extend the range of services in the region.
There are around 15 more enterprises that have an MPI license. Some of these firms include Ripple, Coinbase, Revolut, Paxos, and Blockchain.com. The first in-principal verification from MAS was issued in October last year.
The firm has been offering services to Singaporean consumers since 2018. Raks Sondhi, the COO of Upbit Singapore noted that the firm is focusing on institutional development and infrastructure projects within the region at that time.
MAS Introduces Crypto Regulations to Prevent Speculation
MPI-licensed firms are able to offer digital currency and fiat-based services to local consumers. At the same time, the registered firms have the ability to process payments without a single transaction limit of 3 million Singaporean dollars ($2.2 million) and a monthly limit of 6 million Singaporean dollars ($4.4 million).
MAS introduced a new regulatory framework for digital payment token service providers as a way to discourage speculation in cryptocurrency investment.
As per the regulatory framework, MPI service providers will not offer margin or leveraged transactions or any type of incentives for crypto trading. Furthermore, consumers cannot use credit cards to purchase cryptocurrencies and their reserves are not included as part of their net worth at the banking institutions.
MAS Expands Regulatory Control Over Crypto-based Financial Products
MAS has recently introduced a new crypto regulatory bill. This bill will allow the regulators to issue written directions regarding unregistered business operations. The bill is set to be presented before the Parliament of Singapore.
If it is approved it will make a major impact on digital currency firms. This bill will expand the power of MAS by issuing directions for capital markets services license (CMSL) firms that are conducting illegal business.
In this manner, the CSML offers unregistered products that such as Bitcoin futures and other payment token derivatives on foreign exchange. The regulatory agency has issued regulations regarding risk-averse measures for retail investors but the new bill will expand the regulatory implication.
Security Standards for CSML Holders
On this account, MAS will issue minimum standards and security checks for CSML holders. The firms that are offering cryptocurrency trading services in the region can hold both MPI and CMSL licenses simultaneously.
The regulator also revised policies for stablecoins in August 2023 following Circle and Ripple gaining an MPI license. At the same time, MAS is also working on tokenization projects in accordance with Project Guardian.
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