Paxos, a blockchain infrastructure platform, announced today that it has received in-principle approval from the Monetary Authority of Singapore.
The approval for the US-based crypto firm comes days after Swiss crypto bank Sygnum received a nod from the regulator to expand its crypto offerings in Singapore.
Paxos noted in its release that it will now operate digital payments token services under Singapore’s Payment Services Act 2019. Before this, the stablecoin issuer was only regulated in New York under the first limited purpose Trust charter for digital assets.
The license will also help Paxos to support its current partners in expanding their services into Asia, the platform noted.
Rich Teo, Co-Founder and CEO, Paxos Asia, commented, “We founded Paxos in Singapore in 2012 because of this jurisdiction’s forward-thinking approach to innovation and oversight.”
Since the last year, the city-state of Singapore has become a crucial hub that has handed over several crypto licenses to both domestic and international players. Some of the other names which received a green light from the MAS as Digital Payment Token (DPT) services providers include cryptocurrency exchange Independent Reserve, venture firm DBS Vickers, and fintech firm FOMO Pay.
Additionally, Paxos’ approval comes at a time when crypto giants are expanding their offerings in the Asian market. However, it hasn’t been an easy road for everyone.
Last year, the MAS had released a list of 70 platforms, including notable names like Binance Asia, Upbit Singapore, OKCOIN, Ripple Labs Singapore, Gemini Trust Company, Bitstamp, and Coinbase Singapore. These DPT providers were granted an exemption from holding a license under the Payment Services Act for a specified period. Before the approval, Paxos was also one of the exempted players on the list.
However, Huobi Global and Binance had to halt digital asset trading in Singapore to comply with the domestic law. Despite these occasional roadblocks to some of the players, Paxos is now looking forward to expanding in the nation-state.
Teo added, “We’re excited to have MAS as our regulator, and with their oversight, we’ll be able to safely accelerate consumer adoption of digital assets globally by powering regulated solutions for the world’s biggest enterprises.”
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