Major digital asset exchange – Cryptocom – has received in-principle approval from the Monetary Authority of Singapore to offer a variety of payment services within the Asian city-state.
The regulator has also given the green light to two additional firms in the crypto industry – Genesis and Sparrow – to offer similar services.
MAS said ‘yes’
In a recent announcement, Cryptocom explained that the latest approval will enable the exchange to offer multiple settlement solutions within the Payment Services Act, including Digital Payment Token (DPT) services to Singapore customers. The platform’s co-founder and CEO Chris Marszalek commented on the license:
“The Monetary Authority of Singapore sets a high regulatory bar that cultivates innovation while protecting consumers, and their in-principle acceptance of our application reflects the reliable and secure platform we have worked diligently to build.”
He further described Singapore as a “thriving market for fintech innovation” where cryptocurrencies and other technologies can flourish.
Cryptocom has been badly affected by the recent crash of the cryptocurrency market. Earlier this month, the company Told It plans to lay off 260 employees, or 5% of its total workforce. However, once the negative trend reverses, Cryptocom will be “ready to dive in and catch the next wave of growth,” Marszalek assured.
In addition to the exchange, MAS gave its approval to digital asset broker – Genesis – and crypto trading venue – Sparrow. 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 railings while encouraging innovation and reaping the benefits,” said Heng Swee Keet, Deputy Prime Minister of Singapore.
The latest approvals have taken the number of cryptocurrency firms receiving “yes” from MAS to 14. However, this is only a small fraction of the 200 applicants who have sought watchdog approval throughout the years.
Singapore Aims To Be A Crypto Hub
Several months ago, Ravi Menon, head of MAS, outlined the watchdog’s ambitions to transform the city-state into a global hub of the cryptocurrency industry. In his view, however, this goal can be achieved by enforcing comprehensive regulations in the region.
Menon argued that criminals can use digital assets in their illegal activities, which means that the rules should be as “stringent” as possible.
Last month, Singapore’s top financial regulator joined hands 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 – JP Morgan Chase.
“Project Guardian” will examine potential use-cases for decentralized finance (DeFi) and asset tokenization and double down on Singapore’s intention to emerge as a cryptocurrency hub.
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