In an exciting development, the Monetary Authority of Singapore (MAS) has granted in-principal approval to GSR Markets Pte. Ltd, a subsidiary of crypto liquidity provider GSR for a Major Payment Institution (MPI) license. With this MPI license, GSR will be able to provide crypto and fiat-linked services to Singaporean entities and residents, without any restriction on individual transaction thresholds of S$3 million or monthly limits of S$6 million.
Established in New Jersey in 2013, GSR performs over-the-counter crypto trading, derivatives, market making, and venture capital investments. It already possesses Money Service Business licenses in several states and is now looking to broaden its footprint into the Asia-Pacific region via its Singaporean arm.
This development follows recent news that Coinbase, the crypto exchange has also received a full MPI license from MAS. This permission allows Coinbase to provide digital token services to Singaporean individuals and institutions.
These developments are milestones in the course of crypto regulation. MAS has established an impressive precedence in paving the pathway for digital asset usage. Though, it’s critical to find balance. Explicit advantages of crypto transactions, like low transaction costs, high-speed global transactions, and financial access for the unbanked need to be weighed against potential issues. Lack of a central intermediary means transactions are irreversible. Tracking nefarious activities becomes a prominent challenge. Furthermore, the inherent volatility of cryptocurrencies could pose substantial financial risks to the unsuspecting or uninformed users.
Singapore, viewed as a significant hub for fintech innovations, seems to have understood this balance. The country is now home to over 700 Web3 companies and survey data provided by Coinbase shows that 25% of the city-state’s populace views crypto as the future of finance. MAS’s regulatory sandbox approach could be seen as a role model, allowing firms to test their innovative products, services, business models, and delivery mechanisms in a safe environment.
In an increasingly digitized world, crypto and blockchain technology offers a ripe opportunity for innovating the financial infrastructure. While the pros of this technology might seem evident, grappling with the cons can be seen as an evolutionary step. As seen though the lens of these recent approvals by MAS, it’s inarguable that the future of finance might have a significant crypto element. An innovative, adaptive regulatory framework would be critical in bridging the gap between potential and actuality, between promise and delivery. These advancements are just precursors to a future of finance that is as intriguing as it is speculative. This, after all, is the essence of the crypto adventure.
Source: Cointelegraph
