Singapore Grants Circle And Paxos Operational License
The Monetary Authority of Singapore (MAS) has approved a license in principle for two leading stablecoin issuers, Circle and Paxos, to offer services in the country.
A week ago, the regulator released two consultation documents on proposals for overseeing the digital asset ecosystem under the Singapore Payment Services Act (PSA).
The parliament already passed the act in 2019 geared toward regulating the payment system. In addition, the PAS would empower MAS to regulate the activities of payment service providers.
However, MAS granted Circle a major payment institution license. The new approval would allow the firm to issue crypto assets and process local and cross-border payments. On the other hand, Paxos’s license is to offer digital payment services in Singapore.
Meanwhile, both stablecoin issuers are now legally recognized to operate in the country. As a result, their US dollar-pegged stablecoins (USDC and USDP) will now become digital token payment assets. It is worth noting that Circle is behind the USD Coin (USDC), while Paxos is the Pax Dollar (USDP) issuer.
Dante Disparte, Circle’s global head of public policy, noted that its approval in Singapore would pave the way for more expansion in crypto payments. He added that cryptocurrency has the potential to open up the payment landscape and drive economic growth.
Singapore will benefit from the innovative payment systems of stablecoins, given its friendly regulations, Disparte added.
Circle’s co-founder, Jeremy Allaire, revealed that getting a license in “one of the global financial hubs” will bolster Circle’s regional and cross-border expansion.
Singapore’s Changing Regulatory Landscape
Following Singapore’s easing of its crypto laws, how many digital asset service providers will follow in Circle and Paxos’ footsteps remains to be seen. MAS has turned down more than 100 applications out of 170 since the end of last year.
Furthermore, in 2022, the regulator tightened its strict guidelines after the scandal involving the now-bankrupt Singapore-based Three Arrows Capital (3AC). However, many in the country’s crypto space believe that MAS would be stricter and more brutal in its enforcement of regulations for the industry.
The country aims to regain its previous status as one of the world’s crypto havens. However, due to retail investors’ demand for expansion in virtual financial products, Singapore is treading with caution.
Meanwhile, Singapore’s biggest bank, the DBS, has announced its expansion into crypto trading services for approved investors who meet the strict requirements.
In another development, a recent survey by KPMG revealed that Singapore’s high-net-worth individuals are driving cryptocurrency adoption. It added that prominent personalities had boosted confidence in the industry, powered by the mainstream institutions’ investment.
Many of the country’s traditional financial giants have debunked the authorities’ opinion that crypto is a risky investment for retail traders. As a result, most large institutions have dedicated a significant amount of their portfolio to crypto investments, with a preference for stablecoins, Bitcoin, and Ether.
However, analysts believe that the allocations are too low but expect things to change when the broader market recovers. KMPG also pointed out that Singapore’s crypto regulations will improve further.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
