Following Coinbase’s recent approval to use Digital Payment Tokens (DPT) in Singapore, there’s more excitement brewing in the crypto realm. This time, the spotlight is on Blockchain.com, a crypto exchange that’s making a similar significant move. The Monetary Authority of Singapore (MAS), the country’s central bank, has granted special permission to Blockchain.com to do something important. This shows that using cryptocurrencies is becoming even more common in this part of the world.
Key Steps in Blockchain.com’s Journey
Blockchain.com made an official announcement on a Monday, disclosing that it had secured a major payment institution (MPI) license from MAS on August 1. This achievement follows Blockchain.com’s receipt of in-principle approval from Singapore’s central bank back in October of the previous year. The issuance of the MPI license empowers the exchange to extend its Digital Payment Token (DPT) services to institutional clients and investors based in Singapore.
“We commend the Monetary Authority of Singapore on its transparent regulatory process that prioritizes crypto industry oversight while allowing innovation to thrive,” stated Peter Smith, the co-founder and CEO of Blockchain.com. This significant licensing accomplishment places Blockchain.com alongside other DPT service providers in Singapore, including Crypto.com, Paxos, Circle, and Revolut.
Stringent Regulations in Singapore’s Crypto Hub
Singapore has emerged as a recognized crypto hub, particularly within the Asia-Pacific (APAC) region. Despite its relatively small size, the nation has maintained a firm stance on cryptocurrency-related activities through rigorous regulations. MAS, announcing on Monday, unveiled plans to allocate up to SG$150 million (approximately $112 million) to support various fintech solutions, with a particular focus on Web3 technologies.
MAS’s newly introduced ‘Innovation Acceleration track’ highlights the significance of collaboration between the regulatory authority and the industry. The objective is to foster innovative fintech solutions driven by emerging technologies such as Web3. Additionally, the central bank of the city-state proposed a protocol in June that aims to establish benchmarks for the utilization of digital currencies, including central bank digital currencies (CBDCs) and stablecoins.
Furthermore, it’s worth noting that MAS, in collaboration with the Singaporean police, has been actively refining its approach to onboarding crypto service providers. This ongoing effort emphasizes the commitment to ensuring responsible integration and operation within the financial landscape.
Final Thought
The recent developments surrounding Blockchain.com’s regulatory journey and Singapore’s proactive stance towards crypto signal a transformative shift in the financial landscape. As the nation continues to solidify its reputation as a crypto hub, collaborations, and regulatory frameworks will play an integral role in shaping the future of digital assets and innovative fintech solutions.