Singapore has recently become a destination of choice for many crypto-based companies, with GSR Markets, a subsidiary of the cryptocurrency market maker GSR securing an in-principal approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution (MPI) license. This move could potentially see this company joining the ranks of the 14 Digital Payment Token firms that have acquired MPI licenses in the country, including prominent names like Coinbase and Blockchain.com.
The attainment of this approval by GSR certainly holds weight considering the tough admission standards set forth by the MAS. If GSR successfully obtains the full license, this could set the stage not only for its establishment in Singapore but also accelerate the adoption of Web 3.0 and business investments across the wider APAC region.
Some might argue that this development is a manifestation of Singapore’s crypto-friendliness, living up to its reputation as a haven for crypto millionaires, owing to its high tax-friendliness score of 10 out of 10 according to the Crypto Adoption Index by Henley & Partners.
However, it’s worth noting the slightly different tune echoed by Singapore’s recently elected president, Tharman Shanmugaratnam, who has voiced a more critical view towards digital assets. This adds a hint of unpredictability to the country’s otherwise welcoming stance towards the crypto industry.
The GSR Group’s COO, Xin Song, was positive about the MPI license approval, stating that it’s a major recognition from a respected regulator. Furthermore, he praised MAS’s clear framework for digital asset utility, stating that it enables the fostering of local client partnerships and continuity in their role as a liquidity provider within the ecosystem.
But the Singaporean regulator isn’t all about clear guidelines and paths for businesses eyeing to set up in the city-state. As chief fintech officer at the city’s regulator, Sopnendu Mohanty, highlighted back in June 2022, Singapore is “brutal and unrelentingly hard” when it comes to dealing with bad behavior in the crypto industry. This ultimately signals a protective approach for potential investors in the region, despite the friendly outward appearance. So, despite Singapore’s allure to crypto companies, those same companies should tread cautiously, taking these regulatory sternness into account.
Source: Cryptonews
