Ripple Secures In-Principle Approval by Singapore’s Monetary Authority
Ripple Labs chief executive Brad Garlinghouse lauded the in-principle approval granted by the Singapore regulator on its license application. The approval reaffirmed Ripple’s devotion to expand in the Asia-Pacific region.
The blockchain-based payments firm received approval from the Monetary Authority of Singapore (MAS). It benefits its quest to deepen the commitment that Crypto.com has in the Asia-Pacific region.
In-Principle License to Benefit Ripple’s ODOL Services
The preliminary granting of the Major Payments Institution License following its application will facilitate Ripple in offering regulated digital payment services for token products in Singapore. On Wednesday, June 21, Ripple’s statement identified Singapore as the center for its global financial operations. The approval will enable Ripple to expand the usage of the crypto-facilitated On-Demand Liquidity (ODL) service.
Garlinghouse considers Singapore among the leading financial hubs globally and offers Ripple the desired gateway to the Asia Pacific business. He restated that receiving the in-principle license portrays recognition of Ripple’s devotion to the Asia Pacific region and proactive engagement with the regulators worldwide.
A subsequent tweet by Ripple on June 22 indicated that the firm would leverage the in-principle approval to scale the customer utilization of its services. Garlinghouse revisited Ripple’s journey in the Asia Pacific region as remarkable since its entry into Singapore in 2017. It considered the market acceptance of the payment solution as realizing remarkable growth in 2022. The post indicated that Ripple was not operating with a double headcount within the Singapore office.
Singapore Emerging a Global Destination for its Crypto Regulatory Framework
Ripple joins several digital companies that recently secured Singapore licenses in June 2023, including Crypto.com and Circle. Nonetheless, the stricter legislation applied by Singapore regulators leaves the businesses that received not to launch digital-based payment token services fewer than 20.
Singapore is emerging as a critical player in the global digital economy. This is evident with the Monetary Authority of Singapore launching the decentralized finance (DeFi) pilot program to use institutional-grade DeFi protocol. The program, launched in November 2022, leverages the Ethereum network as outlined by Aave founder Stani Kulechov. Preliminary trials successfully deployed the Aave protocol on Polygon in executing foreign exchange transactions and Singapore’s government securities bonds.
The approval of Ripple registration coincides with a period where Singapore is ushering more crypto businesses to rival efforts by Hong Kong in becoming a global digital hub.
Ripple Partners with MAS to Set Digital Regulatory Standards
The MAS announced advanced plans to further the launching of programmable digital money. The whitepaper issued by MAS on Wednesday, June 21, detailed the Purpose Bound Money (PBM) mechanism. It indicated that it would facilitate digital money senders to integrate conditions when executing transfers across various systems.
Garlinghouse, in a Thursday communication, praised MAS for setting the global leader standards of a clear regulatory framework that appreciates innovation and utility of digital assets. Ripple chief legal executive Stu Alderoty echoed Garlinghouse’s stance that MAS is enabling Singapore to establish early leadership and a template that other countries’ regulators should deploy in regulating the crypto ecosystem. He added that the MAS approach is nurturing innovation rather than suppressing digital projects, as witnessed in jurisdictions prioritizing enforcement actions.
Alderoty reiterated that Ripple would devote itself to strengthening the partnership with the MAS to facilitate collective growth in the digital assets ecosystem across Singapore.
Ripple’s Legal Executive Challenges Countries to Expedite Regulatory Development
Alderoty challenged countries struggling to develop regulatory frameworks to emulate Singapore’s approach to developing a transparent taxonomy and licensing framework. He considers the in-principle approval will offer the forward-looking customers harness the potential for blockchain and crypto technologies in establishing an inclusive and borderless financial ecosystem.
Alderoty restated that Ripple’s engagement with MAS extends beyond Singapore’s borders. In particular, Garlinghouse will address the Point Zero Forum to be held on June 27 next week. He will address the Zurich conference regarding the role of investment and regulation in facilitating a resurgence in digital assets innovation.
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