Despite trying to instill harsh regulations with regard to crypto, the Monetary Authority of Singapore [MAS] seemed to be welcoming a plethora of crypto projects into the region. November started on a good note for stablecoin issuers Circle as well as Paxos as they were now allowed to veer into Singapore legally.
Earlier today, Circle managed to acquire an in-principle approval for Major Payments Institution License. Through this, the network was allowed to not just provide cross-border payment services but also issue cryptocurrencies. It should be noted that Circle is the issuer of the fifth-largest crypto and second-largest stablecoin USDC.
Paxos, on the other hand, garnered a license to provide digital payment token services. Similar to Circle, Paxos offers the Pax Dollar [USDP]. This regulatory approval comes a week after MAS rolled out consultation papers regarding the regulation of stablecoin issuers and digital payment token service providers.
The latest regulatory approval will allow these networks to offer their respective stablecoins to Singaporean citizens. Speaking about the same, Paxos Asia CEO Rich Teo said,
“We’re excited to have MAS as our regulator, and with their oversight, we’ll be able to safely accelerate consumer adoption of digital assets globally in partnership with the world’s biggest enterprises.”
Will Singapore emerge as a crypto hub without the increased involvement of retail investors?
Following the downfall of multiple crypto firms, regulators in Singapore grew wary of the industry. With the intention of protecting its citizens, MAS highlighted the possibility of restricting retail investors from pouring their money into the market. Just last week, MAS revealed that retail investors would have to take a test while not employing credit cards for trading or buying crypto. Previously in 2021, the regulator went on to disapprove over 100 applications out of 170.
Compared to this, Singapore seemed to be turning a whole new page in terms of crypto adoption. It should be noted that over the last couple of months, an array of platforms managed to bag approval from MAS.
Addressing Singapore’s inclination towards fintech, Jeremy Allaire, Co-Founder, and CEO of Circle said,
“As one of the world’s leading financial hubs, Singapore is instrumental to Circle’s regional and global expansion plans in raising global economic prosperity.”