Circle and Paxos, two stablecoin issuers, have each been given license clearance in Singapore. In addition, the central bank of Singapore, known as the Monetary Authority of Singapore (MAS), gave its approval. Circle’s application for a license to operate as a “Major Payments Institution” was approved in principle.
As a result, Circle will now be able to issue cryptocurrency and enhance local and international payments.On the other side, Paxos was granted permission to provide services using digital payment tokens.
The Approval Followed the Guidelines Laid Forth in The MAS’s Consultation Papers
The approvals were announced on November 2 by Circle and Paxos. A week before, the MAS had released two consultation papers. In the papers, there were considerations for regulating service suppliers for stable coins and digital payment tokens. According to the PSA (Singapore’s Payment Services Act), the appropriate paperwork was in order.
The Singapore Parliament approved the PSA in 2019. The PSA supports the MAS, which is intended to govern payment systems—controlling payment service providers’ behavior as its primary objective. Both Circle and Paxos are stable coins that are tied to the US Dollar. USD Coin (UDSC) is issued by Circle, while Paxos offers Pax Dollar (USDP).
Dante Disparte remarked on the subject. Disparte is Circle’s global head of public policing and its chief strategy officer. According to him, its acceptance would increase the potential of cryptocurrencies and open payment systems. Additionally, he said that Singapore’s economy would develop due to the more tolerant regulatory environment.
Circle’s co-founder and CEO, Jeremy Allaire, offered his thoughts on the current situation. He said that gaining a license in one of the major financial centers of the globe would be essential to Circle’s regional and international development goals. He added that it would go far in boosting economic prosperity worldwide.
MAS To Take a Hard Line Against Crypto-Related Crimes
Rich Teo, CEO of Paxos Asia, expressed his delight at its acceptance. They are thrilled to have MAS as their regulator, he said. He continued by saying that Paxos will be able to securely expedite the adoption of digital assets by consumers everywhere under the supervision of MAS. Furthermore, the most prominent companies around the world will collaborate on this.
How many other firms will follow in Circle and Paxos’ footsteps is questionable. Singapore’s regulatory relaxation follows MAS’s rejection of more than 100 out of 170 applications in late 2021 due to the stricter system. Midway through 2022, MAS went one step further. Three Arrows Capital, located in Singapore, went insolvent in 2015, and a subsequent legal battle ensued (3AC).
The MAS would be “brutal and unrelentingly severe” on “bad conduct” from the crypto business, according to chief fintech Sopnendu Mohanty. Singapore is working hard to reestablish its credibility as a crypto-friendly jurisdiction. But, for ordinary investors, it yet remains cautious.
The biggest bank in Singapore, DBS, has decided to increase its cryptocurrency trading services solely. However, the expansion will only apply to authorized investors who fulfill stringent requirements.