San Francisco-based blockchain company Ripple has announced that it has received in-principle regulatory approval to operate in Singapore. The clearance coincides with a crackdown in the US, where agencies are threatening legal action against crypto companies.
After approving various players such as Circle and Crypto.com, the Monetary Authority of Singapore issued Ripple a Major Payment Institution (MPI) License.
MAS Issues MPI to Ripple
The license grants the right to Ripple to operate regulated digital payment token products and services in the Asian crypto hub. It can also facilitate the cross-border transfers of XRP and scale Ripple’s on-demand liquidity (ODL) services. The company also operates RippleNet for fund transfers and has expanded in the past year with new partnerships.
Brad Garlinghouse, Chief Executive Officer of Ripple,
“Singapore is a leading global financial center, and a prominent gateway to business in Asia Pacific. We’re incredibly proud to receive an in-principle license from the MAS, reaffirming our commitment to the region and ongoing proactive engagement with regulators globally.”
Take a minute to read more on the background of Ripple’s legal battle with the U.S. securities regulator
Stu Alderoty, the Chief Legal Officer of Ripple, expressed his appreciation for Singapore’s role in pioneering regulatory frameworks for cryptocurrencies. Crypto firms, especially U.S.-based businesses, have been turning to the city-state. This happens as the U.S. remains a legal battleground with the securities regulator.
Singapore Becomes Hub for US Businesses
Crypto platform Gemini has been eyeing expansion plans in Singapore and the UAE. Winklevoss twins-led Gemini plans to hire 100 new staff members for its Singapore hub. Another business to diversify growth opportunities beyond the U.S.
Circle and Crypto.com have both received licenses to operate in Singapore this month. It signals their expansion into the Asia-Pacific region. These approvals highlight Singapore’s efforts to embrace innovation and establish itself as a welcoming jurisdiction. This is in contrast to the skepticism shown in the U.S.
Ripple is part of an ongoing legal battle with the US Securities and Exchange Commission (SEC). It has placed the debate on the classification of XRP as a security in the crypto forefront. Ripple’s co-founder Christian Larsen and CEO Brad Garlinghouse are facing additional legal challenges.
CNBC notes that the company has incurred significant legal expenses, with estimates exceeding $200 million by the time its legal battle with the SEC concludes.
While Singapore is a significant currency corridor for Ripple, its approval in Singapore paves the way for expanding crypto-enabled payments across APAC.
Last week, Ripple acquired Swiss crypto custody services firm Metaco, aiming to diversify its market reach and reduce its reliance on the US.
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