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Paxos Launch Regulatory-Compliant Stablecoin in Singapore

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Paxos, a blockchain infrastructure platform, has introduced a new stablecoin pegged to the USD in Singapore following the acquisition of in-principle approval from the Monetary Authority of Singapore [MAS]. The company’s latest stablecoin aligns with MAS’ stablecoin regulatory framework, unveiled on August 15, outlining essential criteria for issuers such as value stability, capital, and redemption at par. Notably, Paxos stands as the sole entity to receive MAS approval for this initiative, emphasizing its unique position in the market.

While specific details about the new stablecoin, including its name, remain undisclosed, the firm confirmed its USD backing and issuance through the company’s recently established entity in Singapore. In 2022, it achieved a significant milestone by becoming the first U.S.-based blockchain infrastructure platform authorized by MAS to provide digital payment token services under the Payment Services Act 2019.

Paxos
Image Source: Paxos.com

Walter Hessert, Paxos Head of Strategy, highlighted the growing global demand for the US dollar and the challenges faced by consumers outside the U.S. in obtaining dollars securely and in compliance with regulatory standards. MAS’ in-principle approval is seen as a pivotal step for the firm, enabling the company to extend its regulated platform to a broader international user base.

Hessert emphasized Paxos’s commitment to maintaining the highest standards of compliance and oversight, attracting global enterprises seeking stablecoin solutions aligned with regulatory standards to power their businesses and meet customer demands.

Paxos’ Global Alliances

Paxos has established partnerships with leading global enterprises to tokenize, custody, trade, and settle assets. Its blockchain solutions are employed by prominent institutions such as PayPal, Interactive Brokers, Mastercard, Mercado Libre, Nubank, Bank of America, and Societe Generale. The company is recognized as the issuer of various regulated digital assets, including PayPal USD [PYUSD], Pax Dollar [USDP], and Pax Gold [PAXG].

Regulated by the New York Department of Financial Services [NYDFS] in the U.S. and the MAS in Singapore, Paxos has garnered substantial funding, surpassing $540 million from key investors like Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital, and PayPal Ventures. With a global presence, including offices in New York, London, and Singapore, the crypto firm adopts a comprehensive approach to modernizing the financial system.

MAS Pioneers Large-Scale Asset Tokenization: Details

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The Monetary Authority of Singapore, or MAS, has rolled out Project Guardian, a collaborative initiative with the financial industry aimed at expanding asset tokenization initiatives and building foundational capabilities to scale tokenized markets. In accordance with the press release, the project seeks to accelerate institutional adoption of digital assets, aiming to enhance liquidity, unlock investment opportunities, and improve the efficiency of financial markets.

Under Project Guardian, an industry group consisting of 17 financial institutions [FIs] has set the ball rolling by initiating five industry pilots to test promising asset tokenization use cases. These trials aim to integrate across the capital markets value chain, including listing, distribution, trading, settlement, and asset servicing. Notable initiatives include trials by Citi, T. Rowe Price Associates, Inc., and Fidelity International to explore efficient mechanisms for pricing and executing bilateral digital asset trades.

Below is the list released by MAS showing interop contributors including DBS, HSBC, Onyx by J.P. Morgan, SBI Digital Asset Holdings, Schroder, Standard Chartered, Swift, UBS, UOB, Ava Labs, Chainlink, and LayerZero.

MAS

Additionally, MAS is collaborating with international policymakers and financial institutions on a new initiative called Global Layer One [GL1]. GL1 aims to design an open digital infrastructure that will host tokenized financial assets and applications, facilitating seamless cross-border transactions and trading across global liquidity pools while adhering to regulatory requirements. The International Monetary Fund [IMF] staff has joined Project Guardian’s policymaker group, offering an international perspective on policies and legal issues related to cross-border platforms.

MAS Chart New Waters

The Deputy Managing Director of MAS, Mr. Leong Sing Chiong, emphasized the success of Project Guardian’s industry pilots in demonstrating the seamless trading, distribution, and settlement of tokenized financial assets across borders. To fully realize the potential of tokenized markets, MAS believes a scalable digital infrastructure is crucial and welcomes additional stakeholders to contribute to the development of the GL1 initiative.

In the previous month, Singapore’s MAS unveiled its intention to collaborate with Japan, Switzerland, and the United Kingdom to facilitate discussions on legal, policy, and accounting aspects related to digital assets. The initiative aims to bolster the development of cross-border digital assets, encourage the implementation of digital asset pilot programs within regulatory sandboxes, and foster the exchange of knowledge among regulatory bodies and industries.

Standard Chartered Unleash Blockchain Innovation In Singapore

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In a strategic move to establish a presence in the Singapore cryptocurrency landscape, StanChart, the venture wing of Standard Chartered, has introduced Libeara, a blockchain platform designed to tokenize traditional financial instruments, with a focus on the Singapore bond fund market. Libeara aims to digitalize financial instruments on blockchains, eliminating the need for third-party intermediaries, thereby reducing costs and enhancing operational efficiency.

Partnering with Singapore-based fund platform solutions provider FundBridge Capital, Standard Chartered’s Libeara intends to create the first tokenized Singapore-Dollar Government Bond Fund, targeting professional investors with a higher net worth and a deeper understanding of financial investing. The launch is contingent upon regulatory approval from Singapore authorities and is anticipated to provide additional investment opportunities with lower operating costs, increased transparency, and operational efficiency.

Standard Chartered

FundBridge’s CEO, Sue Lynn Lim, highlighted the traditional market’s dependence on favored intermediaries and inefficient operational processes, expressing the goal of Libeara to introduce investment opportunities with improved cost-effectiveness and operational efficiency. Investors leveraging Libeara’s system will have the ability to directly subscribe to tokenized government-issued bonds, manage their tokens in secure digital wallets, and execute redemptions and transfers using blockchain technology.

The launch of Libeara aligns with SC Ventures’ strategic expansion into Asia’s digital asset space, a sector historically dominated by non-bank entities. Besides Libeara, StanChart has majority stakes in Zodia Custody, which holds digital assets, and Zodia Markets, a crypto exchange that services institutional clients.

Standard Chartered’s Hong Kong Expansion

As reported by TronWeekly, the digital asset custodian supported by Standard Chartered has recently extended its services to Hong Kong, marking a significant expansion in the Asia-Pacific region. Established in 2020, Zodia Custody specializes in providing secure investment opportunities in cryptocurrencies, primarily catering to institutional clients such as corporations and professional investors.

The decision to expand into Hong Kong was driven by the substantial demand for crypto assets, especially from institutional entities rather than individual retail customers, as per Julian Sawyer, Zodia’s CEO.

“From an emerging market perspective, there are pockets of jurisdictions where a token-form government bond can actually decrease the cost of owning and having one,” Aaron Gwak, Libeara’s CEO, told Nikkei Asia. “This is the type of infrastructure that we want to build and be able to supply to countries.”

Upbit’s Regulatory Victory Ignites Singapore’s Crypto Scene

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Upbit, the South Korean cryptocurrency exchange, is making waves in the global crypto industry with its recent in-principle approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution (MPI) license. This regulatory green light represents a significant step in the company’s expansion strategy, positioning Singapore as a key hub for the exchange’s international operations.

Upbit’s parent company, Dunamu, expressed its delight in a recent statement, emphasizing the importance of this development for their subsidiary, Upbit Singapore Pte. Ltd. The in-principle approval is a pivotal milestone, allowing the exchange to continue offering its services while awaiting the full MPI license. This interim status, which Coinbase also underwent before receiving its full license, highlights the rigorous regulatory scrutiny that such institutions face.

Alex Kim, the founder and CEO of Upbit Singapore, underscored the strategic significance of the MAS approval. Kim stated,

“Since 2018, we have been building solid foundations for a robust digital asset business in Singapore, the leading financial hub in Asia.”

He went on to emphasize the role of Singapore as a global powerhouse in the realm of digital asset innovation. This approval opens doors for Upbit to cater to retail, institutional, and infrastructure-focused businesses, further solidifying its presence in the heart of Asia’s financial sector.

Singapore’s Triad of Crypto Titans: Upbit, Coinbase, Circle

Singapore has been attracting major players in the cryptocurrency industry, with Coinbase and Circle also securing MPI licenses. Circle, for instance, is poised to offer digital payment token services as well as cross-border and domestic money transfer services in the city-state. These developments underscore Singapore’s growing reputation as a crypto-friendly jurisdiction with a proactive approach to regulation.

In conclusion, Upbit’s in-principle approval from the MAS marks a pivotal moment in its global expansion journey. The South Korean exchange’s presence in Singapore not only benefits the company but also underscores Singapore’s emergence as a leading hub for digital asset innovation in the Asia-Pacific region. With this new regulatory approval, Upbit is set to play a significant role in shaping the future of the cryptocurrency industry in the Lion City.

Singapore Forms Committee to Bolster AML Measures, Crypto Impact Looms

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The Singapore government has embarked on a bold step by forming an inter-departmental committee comprising members from key ministries including MAS [Monetary Authority of Singapore], MHA [Ministry of Home Affairs], MinLaw [Ministry of Law], MOM [Ministry of Manpower], and MTI [Ministry of Trade and Industry]. The committee’s primary mandate is to strengthen anti-money laundering measures. This move is expected to have a significant impact on crypto assets, aligning with the global trend of increased scrutiny of digital currencies and transactions.

Singapore

In a comprehensive statement recently delivered to Parliament, the government highlighted a three-pronged strategy, encompassing prevention, detection, and enforcement specifically focusing on the real estate and corporate sectors. This comes after Singapore investigated one of its biggest cases of suspected money laundering, in which the value of assets seized stood at over $2 billion.

The seized assets include 152 properties, 62 vehicles, thousands of bottles of liquor, cryptocurrencies, gold bars, and jewelry. In addressing anti-money laundering safeguards in the real estate sector, the Minister highlighted the role of gatekeepers, such as property agents, and developers. He explained the Customer Due Diligence [CDD] checks and the importance of reporting suspicious transactions to the Police.

Singapore’s MAS Defends Crypto Access to FAST System

Moving to the corporate sector, the Singapore minister emphasized putting additional measures for foreign-owned companies, like inquiring into the legitimacy of the entity’s purpose. Moreover, the government has taken steps to ensure the identification of beneficial owners, enhancing transparency and aiding law enforcement agencies in their investigations.

In the realm of digital assets, Singapore has granted operational licenses to cryptocurrency enterprises demonstrating robust AML controls. Some of the leading players that have recently secured full MPI licenses include San Francisco-based blockchain firm Ripple, crypto exchange Coinbase, and Swiss digital asset bank Sygnum.

Singapore
Image Credit: Bitcoin News

Not long ago, a letter in the Financial Times criticized Singapore for allowing virtual asset firms access to the Fast and Secure Transfers [FAST] interbank payment system. Despite the criticism, MAS defended its decision, stating that any entity with a valid banking infrastructure, including crypto businesses, can use the FAST system. MAS firmly denied any connection between the increase in malware scams in Singapore and the cryptocurrency sector. They contended that these scams are more common in the fiat economy, emphasizing that cryptocurrencies are not inherently more vulnerable to fraud than traditional financial systems.

Singapore Grants Licenses To Crypto Firms With Strong AML Measures

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In the latest stride against money laundering, Singapore has granted operational licenses to cryptocurrency enterprises demonstrating robust Anti-Money Laundering (AML) controls. The move signifies the MAS’s unwavering commitment to maintaining the highest standards of financial integrity.

Contrary to recent criticisms, MAS asserted that businesses still need to meet the criteria for participation in its FinTech Regulatory Sandbox as cryptocurrency payment providers. Addressing concerns raised in a letter published by the Financial Times, the MAS clarified that Singapore does not possess a dedicated “crypto sandbox.” Instead, the nation boasts a versatile sandbox supporting various fintech innovations.

As per the recent report, the letter chastised Singapore for its purportedly unwise decision to grant crypto companies access to the Fast and Secure Transfers (FAST) interbank payment system. This electronic funds transfer system facilitates seamless dollar transactions between participating entities.

Singapore’s Inclusive Crypto Regulation

MAS stood firm, asserting that any entity equipped with a legitimate banking infrastructure can harness the power of the FAST system, extending this privilege to crypto enterprises. Their resolute position emphasizes inclusivity within the financial landscape, reinforcing accessibility for all sectors, including the burgeoning crypto realm. The regulator underscored, “Payments through FAST are in fiat currencies, not cryptocurrencies.”

The MAS unequivocally refuted a correlation between rising malware scams in Singapore and the cryptocurrency sector. They argued that such scams are more prevalent in the fiat economy, asserting that cryptocurrencies aren’t inherently more susceptible to fraud than traditional financial systems.

“These scams entail fraudsters taking control of customers’ mobile devices and effecting unauthorized transfers through the banking system in fiat currencies.”

The MAS has been actively engaging the public in soliciting feedback on comprehensive regulatory measures designed to mitigate potential risks posed by cryptocurrencies to retail customers. This demonstrates a proactive approach to ensuring a secure and well-regulated environment for crypto-related activities.

Former MAS Chair Tharman Shanmugaratnam, known for his cautious stance on crypto assets, secured victory in Singapore’s presidential race. Shanmugaratnam, who had previously labeled crypto assets as “highly volatile” and “highly risky as investment products,” offered a further indication of Singapore’s nuanced approach towards the crypto sphere. His election is significant in Singapore’s evolving relationship with digital currencies.

Related Reading:| Monetary Authority of Singapore Outlines Common Protocol For Digital Money

Singapore Regulator Awards Payment License To Blockchain.com

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The Monetary Authority of Singapore has granted a major payment institution [MPI] license to the leading web-based cryptocurrency wallet Blockchain.com. The permit now enables the exchange to “provide regulated digital payment token services to its global institutional and accredited investor customers.”

In accordance with the official notice, the payment platform was handed in-principle approval for the license last October. Besides providing a large, profitable trading hub, Singapore also serves as Blockchain.com’s Southeast Asia headquarters, it added.

Not long ago, San Francisco-based blockchain firm Ripple announced it had received in-principle regulatory approval to operate in Singapore. Given the firm’s legal tussle with the SEC back home in the United States, the timing of the development made it noteworthy.

The license has enabled Ripple to extend cross-border transfers of XRP, a cryptocurrency the company is intimately connected with, among its clients, which include banks and financial institutions, and to offer regulated digital payment token goods and services.

The MAS also granted Circle’s Singapore-based affiliate a license to operate as a Major Payment Institution. Circle Singapore opened its office in the city-state in May after receiving in-principle MPI permission from MAS in November.

Singapore has been named as Circle’s primary base in Asia, according to the statement. Jeremy Allaire, co-founder and CEO of Circle, stated, “Singapore is integral to Circle’s global expansion.”

DBS Vickers, Digital Treasures Center, Fomo Pay, Independent Reserve, Metacomp, Paxos, Revolut, Sparrow Tech, and Crypto.com are some of the other companies that hold MPI licenses. According to reports, Gemini has also shown interest in growing in the city-state.

Singapore’s MAS Pools $150M For Web3 Development

The other day, the nation’s top regulator committed to investing up to $150 million over three years, with a ceiling of S$2 million per project, in creative FinTech solutions resulting from cutting-edge technology like Web 3.0.

As reported by TronWeekly, it is a part of the revised Financial Sector Technology and Innovation Scheme [FSTI 3.0], through which the central bank is ramping up its efforts to support a flourishing technology ecosystem for the financial sector while also speeding up and bolstering innovation by supporting initiatives that make use of emerging technologies with a regional focus.

Deputy Prime Minister, Minister of Finance, and Chairman of MAS, Mr. Lawrence Wong, first unveiled FSTI 3.0 during the Singapore FinTech Festival in 2022.

Singapore’s MAS Bet $150M To Accelerate Web3 Innovation

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The Monetary Authority of Singapore [MAS], the nation’s financial watchdog, declared that it will invest up to $150 million over three years, with a ceiling of S$2 million per project, in creative FinTech solutions resulting from cutting-edge technology like Web 3.0.

The latest fund outlay is part of the updated Financial Sector Technology and Innovation Scheme [FSTI 3.0], through which MAS is stepping up its efforts to support a thriving technology ecosystem for the financial sector while also accelerating and strengthening innovation by supporting initiatives that make use of emerging technologies or have a regional focus, as per the press release.

FSTI 3.0 was first unveiled by Deputy Prime Minister and Minister for Finance and Chairman of MAS, Mr. Lawrence Wong, at the Singapore FinTech Festival in 2022.

In June this year, the nation’s de facto central bank released a whitepaper that outlined 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. PBM, or purpose-bound money, was discussed in the whitepaper.

As reported by TronWeekly, PBM is a component of MAS’ Project Orchid, which enables senders to include conditions while sending digital currency between various systems, such as validity periods and the kinds of stores.

Another exciting development that recently emerged from the city-state is the Singapore Red Cross, the local subsidiary of the largest humanitarian network in the world, which recently accepted cryptocurrency as a newly accepted form of donation. The organization, which spearheads one of the biggest community services in the nation, will accept Bitcoin, Ethereum, Tether [USDT], USD coin [USDC], etc. for donations.

Singapore Red Cross Opens Door For Crypto Donations

This was made possible by its collaboration with Triple-A, the first cryptocurrency payment gateway granted authorization by the Monetary Authority of Singapore to allow for the possibility of anonymous cryptocurrency donations. The announcement dated August 7 stated that all donations would be converted into fiat money and paid out through bank transfer within one business day.

“By accepting digital currencies, we open our doors to a new segment of donors who are tech-savvy and wish to make a difference through their digital assets.” Benjamin William, secretary general and CEO of the Singapore Red Cross, said in a statement.

Singapore Court Sets A Landmark Precedent, Recognises Crypto As Property

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In a groundbreaking verdict, the high court of Singapore officially acknowledged cryptocurrency as property that can be held in trust. This crucial ruling was made in a case involving Seychelles-based exchange Bybit and a contractor, as revealed in court documents published on July 25.

Bybit Fintech Limited filed a lawsuit against Ho Kai Xin, alleging that she had exploited her position by secretly transferring USDT to addresses that she owned and controlled, as well as transferring fiat currency to her personal bank account, which violated her employment contract.

As per the application, Bybit sought the return of the same or of its traceable proceeds or the payment of a sum equivalent in value.

After discovering unusual transactions, the exchange confronted the defendant, who initially attributed the payments to inadvertent mistakes or technical errors. However, later on, Ms. Ho accused her maternal cousin, Jason Teo, of stealing her personal identification, which made it impossible for her to access her accounts.

Judge Philip Jeyaretnam, who presided over the case, accepted the probabilities of “Jason not existing [or at any rate not playing the role asserted for him by Ms. Ho]” and granted Bybit summary judgment against Ms. Ho. The plaintiff was also awarded costs in the amount of $45k, along with disbursements of $11.5k.

Singapore Judge Refer MAS Consultation Paper On Digital Assets

In making his decision, the Singapore judge cited a recent consultation paper from the Monetary Authority of Singapore [MAS], in which the proposed amendments stated that it is practical to identify and separate such digital assets, supporting the idea that holding them in trust should be permitted by law.

Previously, a Hong Kong court recognized cryptocurrencies as property, stating that they are “capable of being held on trust.” As reported by TronWeekly, the case involved the now-defunct digital asset exchange Gatecoin, where the presiding judge, Linda Chan, determined that cryptocurrencies inherently possess all the characteristics of a property.

According to the article, Hong Kong’s ruling on digital assets aligned with several other common law jurisdictions. In January, an English High Court also recognized that Bitcoin and other cryptocurrencies are considered property and can be subject to a proprietary injunction.

Coinbase Expands Service Offerings In Singapore To Boost Local Adoption

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Coinbase introduced a slew of new products for its Singaporean users as part of its global expansion strategy. This includes USDC order books for advanced trading, free SGD purchases of USDC, and incentives for holding USDC.

In the blog published on May 16, the exchange launched no-fee USDC purchases with SGD [Singapore’s official currency]. Here Users can now earn rewards for holding USDC on Coinbase.

Additionally, USDC order books are accessible on advanced trading, enabling users to exchange more than 200 assets for the stablecoin.

The selection of USDC was made in order to satisfy the needs of people looking for less volatile solutions to start or continue their cryptocurrency journey.

The stablecoin, which was created to be tied to the US dollar, has also been widely adopted for trading in pairs with other digital currencies on exchanges.

In addition, the exchange made it possible to stake ETH, SOL, ADA, ATOM, and XTZ. This is done to draw investors who can make passive income while improving the security and effectiveness of a network.

Just the other day, Coinbase temporarily halted the rewards payout for its ETH staking service due to a minor technical issue.

“The issue has been identified. We are working on a fix to resolve within the next 48-72 hours to resume staking reward payouts”, the firm wrote in the post.

The exchange was in the limelight recently after its request for a rulemaking petition was turned down by SEC who argued that there are already adequate laws in place.

Coinbase and SEC Bitter Legal Tussle

In its response to the exchange’ Mandamus petition, the commission defended its enforcement action against Coinbase and others saying, “Agencies routinely enforce existing rules while considering further amendments to regulatory requirements.”

The commission’s latest response came after Third Circuit ordered the regulator to respond to Coinbase’s second Writ of Mandamus within 10 days.

On April 24, the trading firm filed a narrow action in federal court to compel the SEC to respond yes or no to its July 2022 petition.

The July 2022 petition asked that the SEC “propose and adopt rules to govern the regulation of securities that are offered and traded via digitally native methods,” referring to digital assets like cryptocurrencies.