Ghana, Singapore conduct trade in semi-fungible token pilot project

Project DESFT is meant to encourage trade between small businesses using a CBDC and a stablecoin, with an emphasis on credentialing.

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MAS Proposes Open and Interoperable Framework for Digital Asset Networks

The Monetary Authority of Singapore (MAS) has unveiled a comprehensive report introducing a framework for the design of open and interoperable networks for digital assets. (Read More)

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Ripple Gains In-Principal Approval for Singapore Payments License

Ripple, a blockchain payments company, has cemented its Asia-Pacific presence with an In-Principle Approval of the Major Payments Institution License application from the Monetary Authority of Singapore (MAS). The approval was granted to the San Fransisco-headquartered firm’s Singapore subsidiary, which is its Asia-Pacific headquarters.

Ripple Inches Closer to a Singapore License

Announced today (Thursday), the new approval will allow Ripple to offer regulated digital payment token products and services within Singapore. The company can also expand customer usage of its On-Demand Liquidity (ODL) service.

“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,” said Ripple’s CEO, Brad Garlinghouse.

“The MAS continues to be a global leader in establishing clear rules of the road to recognise the innovation and real-world utility of digital assets, and its benefits to the global financial system. We look forward to strengthening this partnership to collectively propel the growth and development of the digital assets ecosystem in Singapore.”

The Next Crypto Hub

Ripple is among many crypto and blockchain firms that have shown interest in Singapore. The city-state has clear rules for crypto companies and is becoming a hub for the industry in the region.

Recently, the crypto bank Sygnum received similar in-principal approval from the MAS. The companies that have already received the Singapore payments license are Coinbase, Blockchain.com, Circle, and Paxos.

“As more countries develop regulatory frameworks for crypto, many are looking to Singapore’s early leadership in developing a clear taxonomy and licensing framework,” said Stu Alderoty, Ripple’s Chief Legal Officer.

“This in-principle regulatory approval from the MAS will enable us to better support our forward-looking customers looking to hone in on blockchain and crypto technologies to build a more inclusive and borderless financial system.”

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Ripple gets in-principle nod for digital asset services in Singapore

Ripple says the "in principle" approval will help scale its "On-Demand Liquidity," the service it uses to source XRP liquidity to customers.

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Monetary Authority of Singapore Outlines Common Protocol For Digital Money

Singapore’s de facto central bank- The Monetary Authority of Singapore [MAS] today released a whitepaper that suggests a standard protocol to lay out the requirements for the use of digital currency like CBDCs, tokenized bank deposits, and stablecoins on a distributed ledger. It allows senders to establish restrictions like the duration of the validity period and […]

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SVB Crisis: Impact on Singaporean Startups Limited, Says Central Bank

<p>The Monetary Authority of Singapore (MAS) has said that the collapse of Silicon Valley Bank (SVB) and other two US-based banks has limited impact on startups in its ecosystem, including those with operations in the United States.</p><p>The conclusion is based on initial feedback, MAS announced on Monday, noting that it is working closely with Enterprise Singapore, a statutory board under the country’s Ministry of Trade and Industry, to assess any potential impact of the developments on the country. </p><p>“MAS and other government agencies will continue to monitor the situation closely for any signs of stress,” the central bank noted.</p><p>Singapore Has "Insignificant Exposures" to Failed US Banks</p><p>Furthermore, the financial regulator noted that the Singapore banking system, on the whole, has “insignificant exposures” to the failed United States banks, adding that banks in the Asian country are “well-capitalized and conduct regular stress tests against interest rate and other risks.”</p><p>Additionally, MAS assured that the country’s banking system remains “sound and resilient,” adding that the Singapore Dollar money and foreign exchange markets “continue to function well.”</p><p>“MAS is closely monitoring the domestic financial system and international developments. MAS stands ready to provide liquidity through its suite of facilities to ensure that Singapore’s financial system remains stable and financial markets continue to function in an orderly manner,” the central bank explained.</p><p>US Sees Largest Bank Collapse Since 2008</p><p>Last Friday, SVB, which targeted its banking and lending services at early-stage technology companies, collapsed following a run on the bank. As a result of higher interest rates, private equity funding became more expensive for technology firms, resulting in more withdrawals to meet their needs.</p><p>In a bid to meet customers’ needs, the California-based bank made efforts to raise funds, including a plan to offer $2.25 billion in common equity and preferred convertible stock. Additionally, the bank sold its bond portfolio comprising majorly of US government bonds at a $1.8 billion loss. </p><p>However, the efforts did not salvage the bank as the struggling lender was later <a href="https://www.financemagnates.com/cryptocurrency/svb-crisis-circle-escapes-usdc-depeg-with-regulatory-assurance/" target="_blank" rel="follow">admitted under the receivership</a> of the Federal Deposit Insurance Corporation. The bank’s collapse has been described as the largest bank failure since the 2008 financial crisis.</p><p>New York regulators on Sunday would later <a href="https://www.financemagnates.com/cryptocurrency/signature-bank-collapse-coinbase-and-paxos-disclose-massive-exposure/" target="_blank" rel="follow">shut down Signature Bank</a> “to protect depositors.” Days earlier, another struggling crypto-friendly bank, Silvergate, <a href="https://www.financemagnates.com/cryptocurrency/silvergate-bank-announces-voluntary-liquidation-amid-troubles/" target="_blank" rel="follow">winded down its operations</a> and voluntarily liquidated its assets.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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Singapore Police Investigating Crypto Platform Hodlnaut for Fraud

<p>Singapore police are investigating local cryptocurrency lending and borrowing platform, Hodlnaut, and its directors for alleged cheating and fraud.</p><p>According to the official press release of <a href="https://www.financemagnates.com/tag/singapore/" target="_blank">Singapore</a> police, the investigation came following multiple reports of allegations of false representations by the troubled crypto exchange.</p><p>"Between August and November 2022, the Police received multiple reports alleging that Hodlnaut and/or its directors had made false representations relating to the company's exposure to a certain digital token. Arising from these police reports, the CAD is investigating Hodlnaut and its directors for possible cheating and fraud offenses under Sections 417 and 424A of the Penal Code 1871," the police stated.</p><p>The troubles of Hodlnaut surfaced when the platform suspended all activities, including withdrawals and deposits, in August. The step was taken after the platform reportedly lost $189.7 million due to the collapse of the Terra ecosystem.</p><p>Additionally, the Singapore-based crypto company revealed the exposure of over SGD 18.3 million ($13.3 million) earlier this month to now collapsed <a href="https://www.financemagnates.com/terms/c/cryptocurrency-exchange/" target="_blank" id="601e2e5f-0c28-4253-9ad4-5e6b251ba2fa_1" class="terms__main-term">cryptocurrency exchange</a> <a href="https://www.financemagnates.com/tag/ftx/" target="_blank">FTX</a>.</p><p>The Singapore police are now asking Hodlnaut customers to report their deposits on the platform or any suspicious activities. "If you have deposited digital tokens with Hodlnaut and believe that you may have been defrauded through, among others, false representations made by Hodlnaut, you may wish to lodge a police report," the press release added.</p><p>Singapore Focus on Crypto Regulations</p><p>Several cryptocurrency startups flocked to Singapore after the Chinese government's crackdown on the exchange. However, recently the local industry has faced several setbacks with <a href="https://www.financemagnates.com/cryptocurrency/vauld-filed-a-moratorium-order-for-protection-against-its-creditors/" target="_blank">several local entities' collapsing</a>.</p><p>The Monetary Authority of Singapore (MAS) oversees local crypto companies and is now <a href="https://www.financemagnates.com/cryptocurrency/singapores-mas-proposes-restrictions-on-retail-crypto-trading/" target="_blank">tightening regulations</a> around the industry. It proposed several rules recently, mainly around the circulation of stablecoins and the restriction of retail activities. It even wants to prohibit cryptocurrency lending services to retail investors.</p> This article was written by Arnab Shome at www.financemagnates.com.

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Singapore’s MAS: FTX Not Licensed, Protection of Local Users Impossible

<p class="MsoNormal text-align-justify">The Monetary Authority of Singapore (MAS) has clarified that it was not possible for the central bank to protect local users of the services of the beleaguered cryptocurrency exchange, FTX, as the business was not licensed to provide virtual asset services in the country. </p><p class="MsoNormal">“A first misconception is that it was possible to protect local users who dealt with FTX, such as by ringfencing their assets or ensuring that FTX backed its assets with reserves. MAS cannot do this as FTX is not licensed by MAS and operates offshore,” MAS explained in a press statement released on Monday.</p><p class="MsoNormal">The financial regulatory authority also faulted the belief that Singaporean investors’ assets in FTX could have been protected if they were domiciled in the crypto exchange’s local subsidiary, Quoine Pte Limited. MAS dismissed this, adding that "Quoine, like other overseas subsidiaries of FTX, has been included in the US bankruptcy proceedings and has halted withdrawals.” </p><p class="MsoNormal">The regulator’s comment comes on the heel of <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/">the collapse</a> of the once-beloved FTX whose fall was precipitated by <a href="https://www.financemagnates.com/cryptocurrency/binance-to-acquire-ftxs-non-us-assets-to-clear-out-liquidity-crunches/">a liquidity crisis</a> and <a href="https://www.financemagnates.com/cryptocurrency/binance-pulls-out-of-ftx-acquisition-crypto-chaos-ensues/?utm_source=FMnewsletter&utm_medium=email&utm_campaign=10.11.22%2F">its failed attempt for a bail-out</a>, forcing it to <a href="https://www.financemagnates.com/cryptocurrency/troubled-ftx-files-for-bankruptcy-as-ceo-bankman-fried-resigns/" target="_blank">file for bankruptcy protection</a> in the United States. </p><p class="MsoNormal">FTX’s Debts</p><p class="MsoNormal">A number of developments have marked the fallout of FTX so far. Last Thursday, John Ray III, the new CEO of FTX, described the running of the FTX Group under Sam Bankman-Fried, Co-Founder and former CEO, as <a href="https://www.financemagnates.com/cryptocurrency/ftx-saw-complete-failure-of-corporate-controls-under-bankman-fried/">“a complete failure</a> of corporate controls.” This is even as <a href="https://www.financemagnates.com/cryptocurrency/ftx-hacked-1bn-drained-from-ftx-and-ftx-us-accounts-so-far/" target="_blank">over $600 million was drained</a> from FTX wallets hours after the crypto exchange filed for bankruptcy.</p><p class="MsoNormal">In the latest, a bankruptcy document filed over the weekend shows that FTX, once <a href="https://www.financemagnates.com/cryptocurrency/news/ftxs-2021-revenue-jumped-1000-to-1-billion/" target="_blank">the fast-growing crypto exchange</a>, owes $3.1 billion to its top 50 unsecured creditors, with the largest and second-largest creditors owed over $226 million and $203 million, respectively. On top of that, an earlier bankruptcy filing suggests that the exchange, which was valued at $34 billion at its last funding round, may have over 1 million creditors. </p><blockquote class="twitter-tweet"><p dir="ltr" lang="en">FTX’s top 50 creditors are collectively owed more than $3 billion. All names on the document are redacted. <a href="https://t.co/FfVnWXjX4n">pic.twitter.com/FfVnWXjX4n</a></p>— Kyle Chassé (@kyle_chasse) <a href="https://twitter.com/kyle_chasse/status/1594691072013512705?ref_src=twsrc%5Etfw">November 21, 2022</a></blockquote><p class="MsoNormal">Following FTX’s collapse, several venture capital firms such as Singapore’s Temasek, Soft Bank’s Vision Fund, and Sequoia Capital, have been <a href="https://www.financemagnates.com/cryptocurrency/singapores-temasek-writes-off-275-million-ftx-investment/" target="_blank">writing off millions of dollars</a> of their investments in FTX. </p><p class="MsoNormal">According to reports, FTX under Bankman-Fried lent out billions of its customer funds to corporate sibling Alameda Research for leveraged crypto trades. This resulted in its fall when FTX ran into a bank run and “liquidity crunch” after the crypto exchange’s close-knit balance sheet with Alameda Research became public knowledge.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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Paxos Becomes “Major Payments Institution” in Singapore

<p> Paxos, a cryptocurrency trading and custody platform, announced on Wednesday that Paxos Global Pte Ltd had acquired a license from the Monetary Authority of Singapore (MAS). Under the new license, <a href="https://www.financemagnates.com/tag/paxos/" target="_blank">Paxos </a>will be able to offer digital payment token services, and it will become the first <a href="https://www.financemagnates.com/terms/b/blockchain/" target="_blank" id="be18ed01-45fc-4044-b447-06802a10dbcd_1" class="terms__main-term">blockchain</a> infrastructure platform from the USA with a Major Payments Institution (MPI) license. </p><p class="MsoNormal">According to the Singaporean Payment Services Act 2019 (PSA 2019), Paxos can now offer its blockchain and digital assets products to businesses operating within the local market. It is worth noting that Paxos is one of the first companies from the crypto sector with an MPI license. </p><p class="MsoNormal">“We founded Paxos to make it safer and easier to move assets at any time, anywhere. From the start, we’ve been committed to innovating within regulatory frameworks. We’re honored to be one of the first US-based blockchain platforms to secure this important license from MAS. We believe blockchain and digital assets will revolutionize finance for everyone around the world, but the development of this technology must have clear oversight and consumer protections,” Rich Teo, the Co-Founder and CEO at Paxos Asia, commented.</p><p class="MsoNormal">“We’re excited to have <a href="https://www.financemagnates.com/tag/mas/" target="_blank">MAS </a>as our regulator. Paxos will safely accelerate consumer adoption of digital assets globally in partnership with the world’s biggest enterprises.” </p><p class="MsoNormal">According to the press release, the newly received license should help Paxos establish a better presence of its services in the Asian region.</p><p class="MsoNormal">More Crypto Companies Working under PSA 2019</p><p class="MsoNormal">In March 2022, the company <a href="https://www.financemagnates.com/cryptocurrency/news/paxos-gains-in-principal-approval-from-singapore-regulator/">received</a> in-principal approval to offer its services in Singapore. After six months of further regulatory preparations, Paxos was able to receive full authorization. </p><p class="MsoNormal">According to local law, Paxos can now provide digital payment token (DPT) services and join the ranks of other authorized companies like FOMO Pay, Revolut or Digital Treasures Center (DTC). </p><p class="MsoNormal">Another cryptocurrency services provider, Crypto.com, recently <a href="https://www.financemagnates.com/cryptocurrency/news/cryptocom-gets-in-principle-approval-from-singapores-mas/">confirmed</a> its in-principle approval from the MAS for an MPI license.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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Stablecoin issuers Circle and Paxos gain approvals in Singapore

The approvals came after the Monetary Authority of Singapore issued two consultation papers that proposed to ease regulatory hurdles for digital asset service providers.

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Singapore’s MAS Proposes Restrictions on Retail Crypto Trading

<p>The Monetary Authority of Singapore (MAS) published two consultation papers on Wednesday, proposing new regulatory rules around cryptocurrency trading and circulation of stablecoins.</p><p>The proposed rules focus on minimizing the risks of <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" target="_blank" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed_1" class="terms__main-term">cryptocurrencies</a> to which retail investors are exposed. </p><p>“MAS is concerned that retail customers may not have the financial wherewithal to withstand large losses that are likely to ensue from speculative trading of markets that they do not fully understand,” one of the consultation papers stated.</p><p>If implemented, the rules would prohibit cryptocurrency lending services to retail investors. Further, businesses need to segregate customer assets from their own assets.</p><p><a href="https://www.financemagnates.com/tag/singapore/" target="_blank">Singapore</a> will not allow companies to offer incentives for acquiring crypto customers. Also, businesses in Singapore cannot accept credit cards for selling cryptocurrencies or provide financing options to retail traders.</p><p>Additionally, the proposal might need companies to test the financial knowledge of retail customers. However, these requirements would not apply to AI-based trading systems or institutional investors.</p><p>Making Stablecoins Safe</p><p>The focus of the regulator is on stablecoins. While stablecoins pegged to are not volatile like other cryptocurrencies, the collapse of <a href="https://www.financemagnates.com/cryptocurrency/terra-luna-how-these-7-wallets-brought-the-ecosystem-to-its-knees/" target="_blank">Terraform Labs</a> exposed the sector's vulnerabilities.</p><p>MAS now wants issuers of single currency-pegged stablecoins with a circulation value of more than SG$5 million to hold reserves in cash, cash equivalents, or short-dated sovereign debt securities of at least 100 percent of the circulation value. On top of that, the holding assets should be denominated in the same currency as the pegged currency. Moreover, there will be a minimum base capital requirement of SG$1 million or six-month operating expenses.</p><p>Companies in Singapore can only issue stablecoins pegged to the Singapore dollar or any other G10 currencies.</p><p>Singapore is home to several prominent crypto startups. MAS has stringent registration rules and is now regulating 18 crypto companies, including <a href="https://www.financemagnates.com/cryptocurrency/blockchaincom-gets-regulatory-greenlight-from-singapores-mas/" target="_blank">Blockchain.com</a> and <a href="https://www.financemagnates.com/cryptocurrency/news/coinbase-gains-in-principal-approval-from-singapores-mas/" target="_blank">Coinbase</a>. Binance, on the other hand, has shuttered its Singapore operations.</p><p>“Cryptocurrencies play a supporting role in the broader digital asset ecosystem, and it would not be feasible to ban them,” MAS said.</p> This article was written by Arnab Shome at www.financemagnates.com.

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Blockchain.com Gets Regulatory Greenlight from Singapore’s MAS

<p>Blockchain.com has become the latest <a href="https://www.financemagnates.com/terms/c/cryptocurrency-exchange/" target="_blank" id="601e2e5f-0c28-4253-9ad4-5e6b251ba2fa_1" class="terms__main-term">cryptocurrency exchange</a> to receive regulatory approval from the Monetary Authority of Singapore (MAS), according to a Reuters report.</p><p>The announcement came only a day after its rival <a href="https://www.financemagnates.com/cryptocurrency/news/coinbase-gains-in-principal-approval-from-singapores-mas/" target="_blank">Coinbase</a> revealed its new Singapore in-principal license. With the MAS approval, the crypto exchanges can legally offer crypto products in the city-state.</p><p>Singapore is a major financial center in the Asia Pacific region. In addition, it became a favorite base for crypto companies for its proximity to several major regional markets in Southeast Asia.</p><p>However, the MAS became one of the stringent regulators for crypto startups with strict regulatory requirements. The latest approval of Blockchain.com only took the number of MAS-approved crypto companies to 18, while the Singapore regulator has received around 180 applications for crypto payments licenses since 2020.</p><p>Other companies to obtain the crypto license in the Southeast Asian city-state are Crypto.com and DBS Vickers, among others.</p><p>A Major Crypto Platform</p><p><a href="https://www.financemagnates.com/tag/blockchain-com/" target="_blank">Blockchain.com</a>, which is <a href="https://www.financemagnates.com/cryptocurrency/news/blockchaincom-hits-14-billion-valuation-amid-latest-funding/" target="_blank">valued at $14 billion</a>, is one of the prominent crypto exchanges in the market. It was founded in 2011 as a crypto wallet and later expanded its services to other areas of the industry.</p><p>The platform processed over $1 trillion in cryptocurrency transactions and has 84 million wallet holders from 200 countries. Interestingly, half of its business now comes from institutions.</p><p>Additionally, the company is bullish on the future prospect of its Singapore presence as the new license will help to grow its institutional customers and team.</p><p>Last month, Blockchain.com received a provisional license from the <a href="https://www.financemagnates.com/cryptocurrency/news/blockchaincom-receives-provisional-approval-for-dubai-operations/" target="_blank">crypto regulator of Dubai</a>. This shows the focus of the company on expanding its footprint in several Asian markets. Meanwhile, several other crypto platforms, including Binance and Crypto.com, also received approval from Dubai’s VARA to set up regulated businesses in the Middle East.</p> This article was written by Arnab Shome at www.financemagnates.com.

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SWIFT action: JPMorgan and Visa team on cross-border blockchain payments

Visa is set to integrate its B2B connect network with JPMorgan’s suit of blockchain based cross-border payment products.

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SWIFT action: JPMorgan and Visa team up on cross-border blockchain payments

Visa is set to integrate its B2B Connect network with JPMorgan’s suit of blockchain-based cross-border payment products.

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Coinbase Secures Singapore Crypto License “In Principle”

Crypto exchange giant Coinbase and its Singapore-based arm secured an in-principle approval from the Singapore's Central Bank to provide crypto services.

The post Coinbase Secures Singapore Crypto License “In Principle” appeared first on BitPinas.

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Singapore’s Largest Bank Expands Bitcoin, Crypto Trading To 100,000 More Clients

Following the release of Singapore’s digital asset framework, the country’s largest bank expanded its members-only digital exchange to 100,000 more clients.

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'Most of crypto is still junk' and lacks use case — JPMorgan blockchain head

JPMorgan’s Umar Farooq said that use cases haven't arisen fully and regulation hasn't yet caught up.

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MAS MD Confirms Singapore’s Plan to Curb Retail Crypto Leverage

<p>The <a href="https://www.financemagnates.com/tag/monetary-authority-of-singapore/" target="_blank">Monetary Authority of Singapore</a>’s Managing Director, Ravi Menon, confirmed in a speech on Monday that the regulator is considering bringing customer suitability tests for crypto trading and banning the use of <a href="https://www.financemagnates.com/terms/l/leverage/" target="_blank" id="df61d302-43af-41c3-a06a-e37426a0c2c0_1" class="terms__main-term">leverage</a> and credit facilities for retail traders.</p><p>“But banning retail access to cryptocurrencies is not likely to work,” Menon said in the event attended by more than 50 industry representatives. “The cryptocurrency world is borderless.”</p><p>He further pointed out the “irrationally oblivious” nature of consumers towards the risks of cryptocurrencies. Traders continue to trade cryptocurrencies despite multiple warnings.</p><p>“Adding frictions on retail access to <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" target="_blank" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed_4" class="terms__secondary-term">cryptocurrencies</a> is an area we are contemplating,” Menon added. He also stressed: “Yes to digital asset innovation, No to cryptocurrency speculation.”</p><p>Menon's speech came months after the regulator’s official confirmation of bringing <a href="https://www.financemagnates.com/cryptocurrency/regulation/singapores-mas-mulls-to-bring-retail-crypto-trading-restrictions/" target="_blank">new cryptocurrency trading restrictions</a>. MAS even seeks granular information on <a href="https://www.financemagnates.com/cryptocurrency/regulation/singapores-mas-seeks-information-on-crypto-business-activities/" target="_blank">business activities</a> from cryptocurrency startups operating in the city-state.</p><p>The Asian Crypto Hub</p><p><a href="https://www.financemagnates.com/cryptocurrency/singapore-is-the-city-state-ready-to-become-asias-next-crypto-hub/" target="_blank">Singapore </a>became an attractive base for crypto companies after their exodus from China. Now, the Southeast Asian country has mandated licensing of all crypto companies. However, it approved only 14 companies, while almost 200 remain on the waitlist.</p><p>Meanwhile, Singapore also remained in the limelight in the recent fallout of the crypto industry. Several high-flying yet failed crypto platforms are based in the small Asian financial hub.</p><p>Menon also highlighted the conundrum of stablecoins and proposed a consultation for a regulatory approach by October.</p><p>“Many stablecoins lack the ability to uphold the promise of stability in their value. Some of the assets backing these stablecoins – such as commercial papers – are exposed to credit, market, and liquidity risks,” he said. </p><p>“There are currently no international standards on the quality of reserve assets backing stablecoins. Globally, regulators are looking to impose requirements such as secure reserve backing and timely redemption at par.”</p> This article was written by Arnab Shome at www.financemagnates.com.

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Three Arrows Capital Furnished Singapore Regulators With False Information

$250 million assets under management (AUM) restriction was breached twice. A slew of companies have come out to reveal their

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Singapore: Is the City-State Ready to Become Asia’s Next Crypto Hub?

In a speech at the opening of the Point Zero Forum on 22 June 2022, Heng Swee Keat, Singapore’s Deputy Prime Minister and Coordinating Minister for Economic Policies, said that the country is keen to work with “responsible” blockchain and digital asset players for the growth of Singapore’s crypto ecosystem. The recent comments from Swee Keat have boosted optimism among the Asian crypto community which now considers Singapore the top location for crypto innovation in the region.

The Monetary Authority of Singapore, the financial regulatory authority of the city-state, introduced some tough measures recently to eliminate illegal crypto activities in the region. At the same time, MAS has reinforced its commitment to crypto innovation as the island nation has started granting licenses and in-principle approvals to digital asset services providers who are working towards a sustainable cryptocurrency economy.

In the past 24 months, 11 digital payment token service providers received licenses and in-principle approvals in Singapore. The changes in Singapore’s cryptocurrency regulations for the issuances of licenses show that the city-state is focusing more on “quality” than “quantity”.

While the country’s tough stance against “not so responsible” crypto players may decrease the number of license applications in the coming years, it will ensure consistent growth across Singapore’s crypto and blockchain ecosystem, regardless of what’s going on with the prices.

“Many regulators around the world aim to get the balance between consumer protection and enabling responsible financial innovation right. MAS has zero tolerance for bad actors and at the same time educates its officers in Decentralized Finance. This is encouraging,” Daniel Liebau, Chief Investment Officer at Singapore-based Modular Blockchain Fund, told Finance Magnates.

In terms of crypto ownership, Singapore is one of the top locations in the world. According to the Finder Cryptocurrency Adoption Index, 21.9% of people in Singapore own cryptocurrency assets, a figure that gives the city-state 4th rank in the list of the global crypto ownership list. In terms of crypto ownership, the country is ahead of Australia and Indonesia. Retail and institutional adoption of crypto and blockchain products has increased significantly in the last few years.

Farah Mourad, Senior Market Analyst at XTB MENA, believes that the recent strict regulations may slow down the country’s rapid expansion in the cryptocurrency ecosystem, but it will help Singapore become a more sustainable crypto hub with a focus on the long-term growth of the digital asset ecosystem.

In terms of GDP per capita, Singapore is the world’s 4th largest economy. The country witnessed significant growth in the fund management industry, entrepreneurial ecosystem, and information technology, the essential factors for the growth of crypto firms.

According to Liebau, Singapore’s diverse location has played an important role in its growth as a crypto hub. “Singapore has a vibrant and diverse crypto ecosystem including fund managers, startups, service providers, academic researchers, and the Blockchain Association of Singapore that fosters collaboration amongst a wide variety of members,” the CIO of Modular Blockchain Fund, said.

The recent crypto winter forced many companies in the digital asset ecosystem to cut thousands of jobs, some even closed their operations. Countries around the world are now realizing the need for a sustainable crypto ecosystem to keep up with the latest innovations even during market turmoil. As regulations play an important role in the growth of emerging crypto companies, Singapore’s recent changes in crypto regulatory infrastructure coupled with the growing adoption and its strategically important location have made the island nation a strong contender to be a crypto hub in Asia.

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