The central bank of Singapore has granted preliminary authorization to Blockchain.com, the latest cryptocurrency business, to offer Digital Payment Token services in the city-state.
The regulatory certification for Blockchain.com comes shortly after Coinbase announced on October 11 that it had obtained similar “in-principle” permission from the Monetary Authority of Singapore (MAS).
The Monetary Authority of Singapore has granted Coinbase Singapore preliminary approval to provide regulated services in the city-state in accordance with the Payment Services Act, the company said on Tuesday. About 15 companies, including rival Crypto.com, have received this authority since Singapore’s licensing system was implemented in 2019.
Blockchain.com can provide its services now in Singapore
The cryptocurrency exchanges DBS Vickers and Independent Reserve, the provider of digital payment solutions FOMO Pay, and the cryptocurrency-friendly payment app Revolut are just a few of the businesses that already have licenses to provide services for digital payment tokens. If officially approved, Blockchain.com would also join this group.
Peter Smith, the CEO, and co-founder of Blockchain.com, praised the nation’s authorities for establishing a “clear regulatory procedure” to encourage innovation, saying:
“Blockchain.com commends the Monetary Authority of Singapore on its transparent regulatory process that prioritizes crypto industry oversight while allowing innovation to thrive.”
It is hardly the first business to speak favorably of Singapore’s simple regulatory framework for cryptocurrency businesses.
Diogo Mónica, co-founder and president of digital asset platform Anchorage Digital, has cited Singapore’s robust regulatory framework and the establishment of a crypto hub as the reasons why the city-state was chosen as a “jump point” into the Asian markets.
Mónica also emphasized as a key problem the lack of regulatory clarity in the United States, contending that even if a corporation is aware of the regulations governing an asset, it may be challenging to choose which of the 15 agencies to contact.
Of the 170 international contenders, Independent Reserve, a cryptocurrency exchange, was among the first to get preliminary approval for the DPT license in August 2021.
The CEO, Adrian Przelozny, also praised Singapore’s regulatory climate for its openness. The license awards, according to Przelozny, “will maintain Singapore’s status as the top financial center in Asia.”
