Singapore Grants In-Principle Licensing Approval to Independent Reserve Exchange

The Independent Reserve has received an “in-principle approval” from the Monetary Authority of Singapore (MAS) to operate as a regulated Virtual Asset Service Provider (VASP), the exchange said in a press release on 3 August.

According to the announcement, the Independent Reserve’s approval was granted under the terms of Singapore’s Payments Services Act, which was enacted in January 2020 and provides clear rules and regulation for crypto exchanges and service providers. The “in-principle approval” for a Major Payment Institution License will enable the exchange to provide digital payment token services in the area. The CEO of Independent Reserve, Adrian Przelozny, said in a statement:

“To be one of the first cryptocurrency exchanges to be notified by MAS of our in-principle licensing approval is a reflection of the robustness of the policies, procedures and risk management systems that we have put in place. It provides certainty for us as industry participants and security for our customers.”

In order to receive the license, the exchange had to show the MAS it had adequate consumer protections in place, and that it complied with the stringent anti-money laundering (AML) measures, including the Financial Action Task Force’s “travel rule”.

Bloomberg reported yesterday that around 170 exchanges have already submitted their applications, though few meet the MAS requirements. According to sources, around 30 applications have already been withdrawn after the exchanges engaged with the MAS, while two have been outright rejected. VASPs who operated in Singapore before the Payments Services Act came into effect have been permitted to continue to operate under an exemption.