In a January 8 report, the prominent crypto exchange in South Korea, Upbit, received a license to operate in Singapore. The Upbit team confirmed that the Monetary Authority of Singapore (MAS) approved its Major Payment Institution (MPI) license.
The approval of the MPI license will allow the Upbit team to offer a wide range of crypto services to Singaporean residents. According to the announcement, the Upbit team confirmed that obtaining the MPI license will allow the crypto exchange to offer digital payment tokens (DPT) in Singapore compliantly.
Upbit Bags MPI License in Singapore
Also, the crypto exchange will offer individuals and businesses an accredited platform to buy and sell digital assets. The approval of the MPI license demonstrated that Upbit met all the MAS requirements for offering DPT products and services.
News concerning the approval of the Upbit MPI license sparked excitement among the crypto community, who believed that the approval of Upbit’s MPI license would bring positive change to the digital space.
Also the decisive action taken by MAS portrayed the readiness of Singapore to support innovation in the financial sector. For years, Singapore has strived to create a crypto-friendly environment for businesses to become the international hub for digital assets. This has forced the regulators in Singapore to step up and supervise the financial sector by enacting new rules for digital assets.
In 2020 the regulators approved the Payment Service Act that guides the local and foreign exchanges to operate in the region more compliantly. The remarkable contributions made by the regulators have positioned Singapore as a go-to destination for crypto firms. This has inspired high-profile crypto and fintech firms to flock to the region.
Singapore Seeks to Attract More Crypto Investments
A review of the MAS report demonstrated that the market regulators had issued MPI licenses to around 15 fast-paced crypto exchanges, including Kraken, Coinbase, Crypto.com, Revolut, and others. The MPI permit allows the exchange to operate as fully licensed entities.
Reportedly, the Upbit team expanded to Singapore in 2018 and has been striving to receive the approval of the MPI license. Guided by the existing licensing requirements, the MAS approved Upbit’s in-principal permit in October last year.
Suitability of the Singaporean Crypto Market
In an earlier report, the chief operating officer at Upbit, Raks Sondhi, revealed that the crypto exchange will prioritize expanding infrastructure in Singapore. The executive noted that there was a growing demand for institutional products in Singapore. This obliged the Upbit team to proceed with the MPI registrations to offer crypto-to-fiat services to Singaporean institutional clients.
According to the report, MAS silence the tides of speculation concerning digital assets by outlining the requirements for digital payment token service providers. The regulators tasked the digital assets service providers with the responsibility of offering financial products and a platform to trade cryptos. Also, the MAS restricted the use of credit and debit cards in crypto activities.
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