Crypto trading platform Crypto.com has received a license approval from the Monetary Authority of Singapore. Crypto.com is a major exchange looking to expand its operations to the South-East Asia market and eventually globally.
This In-Principle Digital Token Payment License that has been given to other companies has helped the the firms offer services in Singapore.
This license is called the Major Payment Institution License which is construed as a key financial license that falls under Payment Services Act that will help receivers to operate the Digital Payment Token (DPT) services.
The two other companies are Genesis and Sparrow Tech. Upon the final approval, this license will let Crypto.com have the opportunity to provide several payment services to the consumer of Singapore which are in accordance with the Payment Services Act.
Singapore Wants To Be A “Responsible Global Crypto Hub”
Singapore’s Monetary Authority has stated that this particular license is difficult to obtain and is strict because Singapore wants to be a “responsible global crypto hub”.
The trading platform lately has achieved another considerable milestone that would aid its expansion. Recently, the Dubai Virtual Assets Regulatory Authority passed a preliminary authorization to the trading platform. This authorization was for Virtual Asset MVP License.
MAS has “set a high regulatory bar” and the approval actually “reflects the trusted and secure platform” that Crypto.com has built. The DPT license is a license which is not granted easily and it also quite sought after. Only a few companies in Singapore have managed to bag it.
A total of fourteen companies out of two hundred applicants have managed to receive this license, as reported by Bloomberg. This license primarily is dependent on the risk along with the scope of services which the trading platform provides.
The trading platform’s Major Payment Institution License approves it to be able provide the payment services without any particular thresholds.
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Conducive Environment For Cryptocurrency Growth In Singapore
Singapore’s Deputy Prime Minister, Heng Swee Keat, is of the opinion that Singapore is accommodating and adoptive of blockchains and the digital asset industry. He has also mentioned that Singapore is ready to host responsible Digital Asset companies to help facilitate the growth of Web 3.0 community.
In the past one month many crypto firms such as Triple A, Hodlnaut and Paxos have received licenses from the Singapore Regulator. Along with these firms even a Singapore firm called Chintai, received its Capital Markets Services License.
Despite Singapore’s positive stance on crypto, the authorities are still concerned with safeguarding and protecting financial security along with investor interest.
CEO, Kris Marszalek has stated that this indeed will help the platform achieve its goals of expansion in Singapore. This move by Singapore shows that the country has confidence in the digital asset space despite the current downfall that has occurred across the whole industry.
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Featured Image from UnSplash and Chart from TradingView.com