Blockchain-based payments firm Ripple has recently obtained in-principle regulatory approval from Singapore’s Monetary Authority (MAS) to offer digital asset payments and token products in the city-state. This move showcases Singapore’s innovation-focused approach to cryptocurrency-related services—a bright contrast to the legal barriers Ripple has faced elsewhere, particularly in the United States.
The approval from MAS allows Ripple’s subsidiary, Ripple Markets Asia Pacific, to scale its On-Demand Liquidity (ODL) service. ODL enables Ripple’s customers to move XRP around the world without the need for banks to intervene as intermediaries. Ripple CEO Brad Garlinghouse praised the Singaporean regulator for its pragmatic approach, stating that the country will provide a “prominent gateway” for Ripple’s business operations in the Asia Pacific region.
Stu Alderoty, Ripple’s chief legal officer, also lauded Singapore’s early leadership, which is paving the way for other regulators looking to develop a clear taxonomy and licensing framework. The in-principle regulatory approval from MAS will enable Ripple to better support its forward-thinking customers who are exploring blockchain and crypto technologies to create a more inclusive and borderless financial system.
In contrast to Ripple’s smooth path to compliance in Singapore, the company has faced legal challenges in the United States. Since December 2020, Ripple’s legal team has been battling the U.S. Securities Exchange Commission (SEC), which sued the company for allegedly offering XRP as an unregistered security. As the high-profile case awaits ruling, Ripple’s experience highlights the stark differences between regulatory environments worldwide.
Despite the legal battles, Ripple continues to forge partnerships with central banks and financial institutions globally. Most notably, on June 15, Ripple partnered with Colombia’s central bank, Banco de la República, to pilot a Central Bank Digital Currency (CBDC) on its XRP Ledger. The firm has also collaborated with central banks in Montenegro and Thailand.
In conclusion, Ripple’s in-principle approval for digital asset services in Singapore demonstrates the importance of a balanced and innovation-driven regulatory approach to crypto. As the global markets evolve, such an approach may be essential for countries to become key players in the blockchain and cryptocurrency space. On the other hand, legal challenges like the one Ripple faces with the SEC emphasize the need for a clear, unified regulatory framework to foster growth in the industry. With time, one can only hope that such a balance is achieved to enable both innovators and regulators to thrive.
Source: Cointelegraph
