Stablecoin Issuer Circle and Paxos Receive Crypto Payment Approval in Singapore.
Stablecoin issuer Paxos has received regulatory authorization from the Monetary Authority of Singapore(MAS), to provide cryptocurrency services to regional businesses.
In the city-state, the business will offer cross-border and domestic transfer services, as well as digital payment token goods. Additionally, Circle aims to promote institutional cryptocurrency use of USD Coin (USDC) on Singapore’s DeFi and Web3.
On Thursday, Paxos stated that it had a license from Singapore’s financial watchdog, enabling the company to offer blockchain and cryptocurrency services under the nation’s Payment Services Act. The stablecoin issuer claimed that the government’s permission will encourage its partners’ plans to offer more services in Asia.
In the meantime, Peer-to-peer(P2P) payment company Circle Internet Financial said that it has received preliminary clearance from the Monetary Authority of Singapore (MAS) to operate as a major payment institution. This enables them to provide services for both domestic and international transfers, as well as digital payment token goods.
Circle’s head of public policy and chief strategy officer, Dante Disparte, said that the license will allow for the expansion of Circle across the globe, and also it will enhance the demonstration of the digital tokens and open payment systems.
This comes days after the Singapore watchdog held two consultation documents on suggestions to regulate stablecoin issuers and suppliers of digital payment token services under Singapore’s Payment Services Act (PSA). issued.
Singapore is attempting to regain its reputation as one of the nations that are more welcoming to cryptocurrencies. The largest bank in Singapore, DBS, recently opted to limit the use of its cryptocurrency trading services to certified investors who adhere to stringent requirements, thus it is still prudent for individual investors to exercise caution.
Jeremy Allaire and Dante Disparte, executives from Circle, will speak about the future of digital assets during the Singapore Fintech Festival from November 2–4. On the opening day of the Singapore Fintech Festival, another stablecoin issuer, Paxos, also obtained the same MAS license for a digital-token payment service.
103 out of 170 license requests from crypto businesses looking to operate in Singapore were reportedly rejected by the country’s monetary authorities as of December 2021. However, a number of businesses, including Bitstamp Limited, Coinbase Singapore, and Gemini Trust, are identified as having received a licensing exemption.