Stablecoin Circle and Paxos Issuers Gain Approvals in Singapore

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Stablecoin issuers Circle and Paxos have each received approval for their respective licenses from the Monetary Authority of Singapore (MAS), the city-state’s central bank.

Circle received approval in principle for a major payment institution license allowing it to issue cryptocurrencies and facilitate domestic and cross-border payments while Paxos received its license to offer digital payment token services .

Circle and Paxos both announced their approval on Nov. 2, a week after the MAS released two consultation papers on proposals to regulate digital payment token service providers and stablecoin issuers under the law. on Singapore Payment Services (PSA).

The PSA was passed by Singapore’s Parliament in 2019, which purports to regulate payment systems and authorizes the MAS to oversee the conduct of payment service providers.

Circle, the issuer behind USD Coin (UDSC), and Paxos with its Pax Dollar (USDP), both USD-pegged stablecoins will now be able to offer their respective stablecoins and other token products from digital payment in Singapore.

According to Dante Disparte, Circle’s Chief Strategy Officer and Global Head of Public Policy, its approval should unlock greater potential for cryptocurrencies and open payment systems to drive economic growth in Singapore under the more innovative regulatory framework.

Circle co-founder and CEO Jeremy Allaire added that the license “in one of the world’s leading financial centers” will be “instrumental to Circle’s regional and global expansion plans to increase global economic prosperity.”

Paxos Asia CEO Rich Teo was also delighted with his endorsement:

“We are excited to have MAS as our regulator, and with their oversight, we will be able to safely accelerate consumer adoption of digital assets globally in partnership with the world’s largest companies. “

Related: Singapore MAS Reviews Crypto Firms Ahead of New Regulations: Report

While it remains to be seen how many other companies will follow in the footsteps of Circle and Paxos, the loosening of regulations comes as MAS rejected more than 100 applicants out of 170 at the end of 2021 under the stricter regime.

MAS went even further in mid-2022 after the saga now stemming from bankrupt Singapore-based Three Arrows Capital (3AC), with fintech chief Sopnendu Mohanty declaring that MAS will be “brutal and relentlessly tough” on bad behavior. of the crypto industry.

Singapore is fighting to reclaim its perception of being one of the most crypto-friendly countries. However, it continues to err on the side of caution for retail investors – Singapore’s largest bank, DBS, having recently decided to only extend its crypto trading services to accredited investors who meet strict criteria.

Cointelegraph contacted Circle and Paxos for comment, but did not receive an immediate response.

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