Ready for its next phase of expansion, Sygnum Singapore, the subsidiary of the Switzerland-based crypto bank Sygnum, embarks on a significant milestone. They have recently received approval for their Major Payment Institution License (MPIL) from the Monetary Authority of Singapore (MAS). With this new development, the company is primed to offer regulated digital payment token (DPT) brokerage services to Singapore’s accredited investors and institutions.
What’s remarkable about the company’s progress is how swiftly it transitioned from receiving in-principle approval for the MPIL to a full license in just three months. This shift is indeed significant, as it enables the firm to provide payment services without being subjected to transaction limits, which were previously capped at 3 million Singapore dollars ($2.2 million).
Since its inception in 2018, Sygnum has exponentially grown its assets under management to over CHF 3.2 billion. Its diverse clientele – which includes institutional and accredited investors, banks, financial institutions, and distributed ledger technology foundations – now exceeds 1,600 individuals and institutions across 60+ countries.
The attainment of the license also comes with the potential of expanding into the Asia-Pacific markets, specifically Hong Kong, thereby broadening its reach to provide comprehensive crypto services. Gerald Goh, Sygnum Co-Founder and CEO of Singapore, lauds MAS for its progressive approach towards digital assets and believes such advancements will boost investors’ confidence in increasing their exposure to digital assets.
It should not go unsaid that MAS has been quite proactive in granting Major Payment Institution licenses to several digital payment token companies, including notable ones like Coinbase, GSR, Blockchain.com, Circle, Paxos, and Ripple. Their goal towards a stringent licensing criterion emphasising robust anti-money laundering controls translates into a significantly rigorous standard to meet.
However, this in no way diminishes the fact that about 180 companies applied for the cryptocurrency payments license in 2020, demonstrating eager industry participation. This was further clarified when in August 2022, MAS announced plans to implement regulations that discourage retail investors from cryptocurrency trading due to the associated risks.
On one hand, gaining MAS approval seems to open doors for a more controlled, secure environment for digital asset transactions, but on the other, it also hints at the difficulties many of the players face in meeting the high demands of regulatory compliance. This situation undeniably indicates that Singapore is heading towards a tightly controlled, yet potentially fertile, landscape for the future of digital currency.
Source: Cryptonews
