Cryptocurrency exchange Blockchain.com has been granted a payment license in Singapore, expanding its operations in Asia and the world at large. According to a press release on Monday, Blockchain.com announced it had obtained a major payment institution (MPI) license from the Monetary Authority of Singapore (MAS) on August 1, 2023.
Blockchain.com Stamps Presence In Singapore
Blockchain.com’s receipt of an MPI license in August comes after the Singaporean central bank granted the exchange an in-principle approval in September 2022.
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According to the company’s statement, the newly received MPI license will allow Blockchain.com to render “digital payment token (DPT)” services to its institutional and investor clients alike in Singapore.
Under the MAS’s Payment Service Act, this means that Blockchain.com is now allowed to serve as a platform for the exchange of various DPTs as well as conduct DPT transactions themselves.
Furthermore, the MPI license excludes the crypto company from certain transaction volume limits in Singapore, according to the MAS’s official website.
Commenting on this development, the company’s co-founder and CEO, Peter Smith, expresses much excitement commending the crypto-friendly environment in the Asian city-state. Smith said:
We are thrilled to receive this license that will allow Blockchain.com to bring our industry-leading products and services to Singapore, we commend the Monetary Authority of Singapore on its transparent regulatory process that prioritizes crypto industry oversight while allowing innovation to thrive.
Founded in 2011, Blockchain.com is regarded as one of the oldest players in the crypto space boasting 87 million active wallets and 37 million verified customers. The exchange also claims to account for one-third of all Bitcoin network transactions.
Singapore As An Emerging Crypto Hub
Asides from Blockchain.com, other crypto companies with Major Payment Institution licenses in Singapore include prominent stablecoin issuers Circle and Paxos.
In recent years, the Asian nation has seen an influx of crypto businesses driven by a clear regulatory framework and its government’s commitment to the emerging crypto space in its nation.
For example, the Monetary Authority of Singapore announced on Monday plans to commit S$150 million over three years to the development of innovative financial technologies, including Fintech solutions based on Web 3.0.
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Back in June, the apex bank also proposed the Purpose Bound Money (PBM) protocol laying out standards for the use of digital money, such as central bank digital currencies (CBDC), tokenized bank liabilities, and DLT-backed stablecoins.
However, these crypto-friendly moves do not mean that Singapore is oblivious to the dangers of crypto space. In July, the MAS directed all crypto businesses in the nation to transfer user assets to statutory trust before the close of 2023 to minimize the risk of loss or misappropriation of customer assets.
In addition, the financial regulator permits crypto firms to offer staking and lending services to institutional customers only while implementing an exclusive ban on the retail market.