Singapore’s Monetary Authority (MAS) has granted a major payment institution (MPI) license to crypto exchange Blockchain.com, making it the twelfth digital payment token service provider in the country.
The license, received on August 1, enables Blockchain.com to offer digital payment token services to institutional and accredited investors.
This approval comes after the exchange received in-principle approval from MAS in September of the previous year.
Other providers in the country offering similar services include Circle, Independent Reserve, Paxos, Revolut, and DBS Vickers.
The growing number of licensed crypto service providers demonstrates Singapore’s commitment to becoming a prominent crypto hub.
MAS has been actively supporting the fintech sector in the country, pledging $112 million to further strengthen the financial technology industry, including Web3 entities.
In July, the regulator introduced new regulations aimed at enhancing customer protections.
These rules include a requirement for crypto service providers to hold customer funds in a statutory trust by the end of the year.
Moreover, additional proposals are being developed to prevent crypto providers from facilitating lending or staking of retail customer assets.
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Singapore’s efforts to bolster its crypto industry have been showing results.
According to a report by Galaxy Digital in July, while the United States still led in crypto startup funding in Q2 2022, Singapore-based crypto firms secured the third position, trailing only the United Kingdom.
Notably, Blockchain.com’s license comes in the wake of MAS granting an in-principle approval for a similar MPI license to Ripple, a blockchain-based payments firm, in June.
These developments signal the government’s commitment to fostering a favorable environment for the crypto industry’s growth in Singapore.
With robust funding commitments and updated industry regulations focusing on customer protection, the country aims to solidify its position as a leading global hub for cryptocurrencies and related services.
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