Circle and Paxos crypto approval in Singapore
The approvals come after the Singapore Monetary Authority released two consultation papers proposing to lower regulatory barriers for digital asset service providers.
How Circle and Paxos crypto firms received approval
Circle obtained in-principal permission for a Major Payments Institution License, which will let it issue cryptocurrency and deal with domestic and cross-border payments. At the same time, Paxos gained authorisation to provide digital payment token services.
Circle and Paxos announced their approvals on November 2, only a week after the Monetary Authority of Singapore (MAS) released two consultation papers outlining suggestions for regulating digital payment token service providers and stablecoin issuers under Singapore's Payment Services Act (PSA).
The Singapore Parliament enacted the PSA in 2019, which seeks to regulate payment systems and empowers the MAS to monitor the behaviour of payment service providers.
What will Circle and Paxos crypto firms be able to do with approval
Circle, the creator of USD Coin (UDSC), and Paxos, the creator of Pax Dollar (USDP), both US dollar-pegged stablecoins, will now have the approval to sell their stablecoins and digital payment token products in Singapore.
Circle's Global Head of Public and Chief Strategy Officer, Dante Disparte, believes that the licence would increase the potential for cryptocurrencies and open payment systems to stimulate economic growth in Singapore under the more creative legal environment.
Paxos crypto firms Asia CEO's view
We're happy to have MAS as our regulator. With their oversight, we'll be able to safely drive consumer adoption of digital assets internationally in conjunction with the world's largest corporations, said the Paxos Asia CEO, Rich Teo.
While we remain to see how many other enterprises will follow in the footsteps of Circle and Paxos, the regulatory relaxation comes after MAS rejected over 100 out of 170 applicants in late 2021 under the stricter system.
Singapore is working hard to claim back its reputation as one of the most crypto-friendly countries. However, it remains cautious for individual investors, with Singapore's largest bank, DBS, recently opting to limit its crypto trading services to approved investors who fulfil strict requirements.
Author: Emmanuel Baiden
7 years experience within the financial services sector most notably in Sales, Trading, research and writing articles within the crypto space. I have a bachelor's degree in International Business and a Master's in Investment and Risk Finance . I am also an associate member of the Chartered Institute for Securities and Investment.