Crypto.com Granted In-Principle License in Singapore
- One of the advantages of receiving a Major Payment Institution license is that it allows companies to provide Digital Payment Token services to customers in Singapore.
- In order to acquire the license, Crypto.com was obliged to act in accordance with AML and CFT legislations, as well as comply with a number of legal demands.
Kris Marszalek, Co-Founder and CEO of Crypto.com, during RISE 2018 conference, Hong Kong, June 2018. Seb Daly/RISE via Sportsfile
Popular cryptocurrency exchange Crypto.com has received an in-principle approval for its Major Payment Institution License in Singapore, the exchange said in a press release on 22 June.
According to the announcement, the in-principle approval was granted by the Monetary Authority of Singapore (MAS), enabling the exchange to provide a greater range of payment services in the country. One of the major benefits of acquiring a Major Payment Institution License is that it allows companies to provide Digital Payment Token (DPT) services to customers in Singapore. The co-founder and CEO of Crypto.com, Kris Marszalek, said in a statement:
“The Monetary Authority of Singapore sets a high regulatory bar that cultivates innovation while protecting consumers, and their in-principle approval of our application reflects the trusted and secure platform we have worked diligently to build. We look forward to continuing to collaborate with the MAS and deepening our roots in Singapore — a flourishing market for fintech innovation, renowned for its well-regulated business environment.”
Implemented in 2019, the Payment Service Act introduced two new categories to Singapore’s payment framework, the small payment institutions and major payment institution. In order to obtain these licenses, companies are obliged to act in accordance with anti-money laundering (AML) and countering the financing of terrorism (CFT) legislations, as well as comply with a number of other legal demands. MAS has so far received a total of 196 applications for digital payment token service, but only 14 companies have received the in-principle approval.
This is not the first license Crypto.com was granted this month, with the company receiving a provisional approval for its Virtual Asset MVP license from the Dubai Virtual Assets Regulatory Authority (VARA). The exchange noted that it plans to establish a crypto exchange service in Dubai, and that this license will allow it to offer a full suit of crypto products, once the company qualifies for “all mandated requirements”.
- The U.K. Financial Conduct Authority continues its crackdown on crypto ATMs in the country, and has disrupted a total of 26 machines since the start of the year.
- The regulator warned the public back in March 2022 that all crypto ATMs in the country were operating illegally, and issued a “shut down or face further action” order.
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- The requirement to deposit customer assets into a statutory trust comes as a result of a MAS public consultation from October 2022 focused on reducing risk in crypto trading.
- Singapore’s central bank also restricted crypto firms from facilitating lending and staking to retail customers, though the services are still available to institutional clients.
- Crypto.com has once again expanded its regulatory achievements with the acquisition of a major payment institution license for digital payment token services in Singapore.
- The license, for which the company received an in-principle approval last June, enables the exchange to provide a greater range of payment services in Singapore.