Singapore’s Monetary Authority (MAS) has cemented its position as a crypto-friendly jurisdiction by granting a significant payment institution (MPI) license to the renowned crypto exchange, Blockchain.com. This milestone makes Blockchain.com the twelfth digital payment token service provider in the nation, signifying the country’s steadfast commitment to fostering a vibrant crypto ecosystem.
On August 1st, Blockchain.com received the MPI license to extend digital payment token services to institutional and accredited investors. The journey to this license approval took time, as the exchange had already received in-principle approval from MAS in the preceding year, a testament to the stringent regulatory evaluation accompanying such licenses.
The ranks of licensed crypto service providers in Singapore have swelled over time, including prominent names like Circle, Independent Reserve, Paxos, Revolut, and DBS Vickers. This growing fraternity of providers underscores the nation’s unwavering aspiration to establish itself as a globally recognized hub for all things crypto.
MAS’s unwavering support for the fintech sector has been evident through substantial financial commitments. To bolster the fintech industry, including entities in the Web3 space, the authority pledged a substantial $112 million. Moreover, recent regulations in July accentuate Singapore’s emphasis on customer safeguards within the crypto domain.
These newly introduced rules mandate crypto service providers to hold customer funds in a statutory trust by the end of the year, enhancing the protection of users’ assets. Furthermore, MAS is actively shaping additional measures to curtail crypto providers from facilitating lending or staking retail customer assets and promoting responsible industry conduct.
Singapore’s proactive endeavours to fortify its crypto landscape are yielding tangible results. A report by Galaxy Digital in July spotlighted that while the United States continued to lead in crypto startup funding in Q2 2022, Singapore-based crypto firms secured an impressive third position, trailing only behind the United Kingdom.
Blockchain.com’s MPI license coincides with MAS’s in-principle approval of a similar license for Ripple, a pioneering blockchain-based payments firm, in June. These strategic moves underscore the government’s determination to create an enabling environment for Singapore’s crypto industry’s growth.
With well-established funding commitments and a contemporary regulatory framework prioritizing customer safety, Singapore is poised to solidify its reputation as a global hub for cryptocurrencies and associated services. As Blockchain.com’s success and Ripple’s approval converge, Singapore’s aspirations to be a crypto powerhouse are undeniably on an upward trajectory.