Singapore Crypto Custody Firm Propine Granted Capital Market Services License
- Crypto custody firm Propine has graduated from the Monetary Authority of Singapore’s (MAS) FinTech Regulatory Sandbox.
- The company received a Capital Market Services License (CMS) and is fully operational.
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Propine, a Singapore-based crypto custody provider and securities company, has graduated from the Monetary Authority of Singapore’s (MAS) FinTech Regulatory Sandbox and is now fully operational.
According to a press release published on 11 January, MAS approved Propine’s exit from the regulatory sandbox on 7 January, granting it the Capital Markets Services (CMS) license. This makes Propine the only digital asset custodian in the world with ISO 27001 certification.
Propine was admitted to the MAS regulatory sandbox on 8 November 2019. The company participated in the program for just over a year before it was approved to exit.
The chief fintech officer of the MAS, Sopnendu Mohanty, said that the rapid growth seen in the digital asset industry means that regulators have to provide legal safeguards to the market.
“MAS’ regulatory sandbox has provided Propine a safe space to experiment with its dual-layer multi-signatory custody solution that is blockchain-agnostic. We look forward to seeing digital asset custody solutions taking root in Singapore and abroad,” he explained.
Propine highlighted the importance of having a clear regulatory framework, saying that clear rules will allow institutions currently waiting on the sidelines to participate in tokenization.
- 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.
Monetary Authority of Singapore building. The Straits Times
- 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.
- The now rebranded custody arm of crypto exchange Binance, called Ceffu, is planning to apply for a Capital Markets Service license with the Monetary Authority of Singapore.
- If it is able to acquire the license, Ceffy plans to offer custodial services to only institutional and high net-worth individuals in Singapore.