2-9-2023 (SINGAPORE) Most cryptocurrency organizations seeking a license in Singapore have faced challenges in obtaining approval, according to an executive from the Monetary Authority of Singapore (MAS), the city-state’s central bank.
Dawn Chew, the director of corporate communications, stated in the Financial Times on Friday that MAS only grants licenses to applicants with robust anti-money laundering measures in place. Chew’s response was prompted by local resident Thomas See’s criticism that MAS has allowed crypto companies to utilize Singapore’s Fast (Fast and Secure Transfers) interbank payment system without adequate caution, citing concerns about scams and money laundering associated with the industry.
See argued that this move was unwise as it enables a direct connection between retail bank deposits and crypto payments. However, Chew disputed See’s assertion, stating that transactions between customers and crypto firms via Fast do not directly link the customer’s bank deposits to the company.
Obtaining a Major Payment Institution (MPI) license for digital payment token services has proven to be a challenge for most companies. As of September 1, the MAS website listed a limited number of MPI license-holders, including Blockchain.com, Circle Internet Singapore, DBS Vickers, Digital Treasuries Center, FOMO Pay, Foris DAX Asia (Crypto.com), Hako Technology (Coinhako), Independent Reserve, MetaComp, Paxos Global, Revolut, and Sparrow Tech.
Chew also highlighted that MAS has actively sought feedback on regulatory actions aimed at mitigating the risks associated with cryptocurrencies for individual consumers. These regulatory initiatives will be gradually implemented, starting from the end of the year.
“Singapore will implement one of the most stringent regulatory regimes globally, governing retail access to cryptocurrencies,” Chew emphasized.
Singapore is strategically positioning itself as a global hub for digital currencies, aiming to attract international businesses, particularly as many participants in the crypto industry find the regulatory framework in the United States lacking.
