Crypto.com is getting closer to the possibility of offering more payment services to customers in Singapore. However, the Singapore regulator has warned cryptocurrency players against any abusive practices.
Crypto.com on Wednesday received approval in principle from Singapore authorities for its major payment institution license, the first of many regulatory confirmations needed for the exchange to expand its services in the Asian nation. Obtaining this license will allow Crypto.com to operate under the Payment Services Act and offer digital payment token (DPT) services to customers in Singapore.
” The Monetary Authority of Singapore sets a high regulatory bar that cultivates innovation while protecting consumers, and their approval in principle of our application reflects the reliable and secure platform we have worked diligently to build. said Kris Marszalek, co-founder and CEO of Crypto.com on the company’s blog. ” We look forward to continuing our collaboration with MAS and deepening our roots in Singapore – a thriving market for fintech innovation, renowned for its well-regulated business environment.. »
Singapore is one of the most crypto-friendly countries, it is a real Asian hub and its regulation is very clear. Moreover, the mining of bitcoin is regulated there and the energy used is mainly renewable. Additionally, Singapore is launching its Guardian Project which could make the country a global financial hub.
This is good news for the crypto.com exchange which has suffered from attacks on the internet, in particular on its effigy Matt Damon who has been lynched on twitter since the beginning of the bear market.
Singapore regulator says it will crack down on abuse
The Monetary Authority of Singapore (MAS), the country’s central bank and financial regulator, will not tolerate bad behavior in the cryptocurrency industry, according to its head of fintech, Sopnendu Mohanty.
” We have no tolerance for any bad behavior in the market Mohanty told the Financial Times in an interview published Thursday. ” If someone’s done a bad thing, we’re brutal and relentlessly tough. »
Mohanty’s comments come amid turmoil in the cryptocurrency market caused by the collapse of Singapore-based Terraform Labs’ two tokens – terraUSD (UST) and terra (luna) – which wiped out $40 billion in wealth investors.
According to Mohanty, the current market turmoil is a result of the whole world being lost in “private money”.
He went on to suggest that the MAS will not easily license cryptocurrency businesses. The regulator applied a due diligence process “ painfully slow ” and ” extremely draconian for licensing cryptocurrency companies, he said.
Crypto.com’s feat is therefore even more impressive, but some companies are choosing to leave. Like Three Arrows Capital which plans to transfer its headquarters from Singapore to Dubai.
Singapore is positioning itself as an important crypto place while imposing strict regulation, it is a wise choice but which risks discouraging certain companies that do not have the legal will to comply with this type of jurisdiction. The city of Dubai is therefore becoming a serious competitor for Singapore and these two giants will share a titanic Web 3.0 market.
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Passionate about geopolitics, economy, cryptocurrency, Eurasia and travel! (as far east as possible), crypto-trader for 4 years.