Circle Gets Approval in Singapore
- Singapore has an active crypto market, but the country’s regulators are skeptical about the industry due to the failures of several projects.
- Circle and Paxos can issue their respective stablecoins in Singapore following the approval.
- The Monetary Authority of Singapore appears to be loosening its strict stance on cryptocurrencies.
Singapore’s Central Bank, the Monetary Authority of Singapore (MAS), has reportedly issued licenses to stablecoin issuers, Circle and Paxos, making them eligible to operate in the city-state. The MAS has opened its doors to crypto projects despite having strict policies.
November started on a good note for Circle, the company behind the USDC stablecoin, as it received in-principle approval for a major payments institution license, permitting it to issue cryptocurrencies and provide cross-border payment services.
In a statement, Circle’s chief strategy officer and head of public policy, Dante Disparte, said the license will allow the stablecoin issuer “demonstrate the potential of digital currencies [and] open payment systems.” The company’s CEO, Jeremy Allaire, said the license would support Cirlce’s ambition to expand its services. He said,
We are honored to receive the in-principle license, and we look forward to more collaborations with MAS to support the thriving crypto and blockchain ecosystem as well as the advancement of fintech innovation in Singapore.
Similarly, Paxos obtained a permit to offer services for digital payment tokens. Paxos and Circle received their approvals a week after the MAS released consultation papers on regulating stablecoin issuers and digital payment token service providers under the Payment Service Act. The Singapore Parliament introduced the Payment Services Act (PSA) in 2019, enabling MAS to monitor payment service providers’ conduct while simultaneously regulating payment systems.
Both Paxos and Circle can now offer their respective stablecoins to Singaporeans, and Paxos Asia CEO Rich Teo believes this move will increase consumer adoption. He 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.
Regulators in Singapore became skeptical of the sector due to the failure of many crypto businesses. MAS said it considered several options to protect its citizens, including restricting retail investors from putting funds into the market. However, the regulator seems to have loosened its firm approach.
Singapore intends to reclaim its reputation as a hub for crypto activities. The MAS has already issued licenses to other crypto firms but continues to emphasize caution.
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