- Singapore has granted MPI licenses to fourteen virtual asset companies to date.
- According to a report, the Southeast nation has recently emerged as a leading crypto hub.
Singapore recently granted in-principle approval for a Major Payment Institution (MPI) license to cryptocurrency trading firm and liquidity provider GSR’s Singaporean subsidiary, GSR Markets.
GSR announced the approval via a press release on October 2. It stated that it had met the strict compliance requirements of the Monetary Authority of Singapore (MAS) and is working towards obtaining a full license to operate in Singapore.
The MPI license allows GSR to provide crypto and fiat-related services to residents of the city-state.
Founded in 2013 in New Jersey, MSR engages in over-the-counter (OTC) crypto trading in addition to derivatives, market making and venture capital investing.
MSR is not the only company to have received the MPI license from the MAS. Coinbase actually [COIN] obtained the same license as that which MSR received on the same day.
To date, the MAS has granted MPI licenses to 14 virtual asset companies, including Blockchain.com, Circle and Ripple [XRP].
Singapore is overcoming setbacks and emerging as a leading crypto hub
Recall that both the crypto shockers in May and November last year drastically affected Singapore’s crypto industry.
Three Arrows Capital (3AC), a Singapore-based crypto hedge fund, went bankrupt when Terra Luna [LUNA] collapsed in May 2022. Terra’s collapse also led to Singapore-based cryptocurrency lender Hodlnaut losing around $190 million.
Sovereign wealth fund Temasek Holdings got a jolt when FTX [FTT] collapsed in November 2022. Temasek had previously invested $275 million in the exchange. The foundation written off his entire investment in FTX within a few days of the disaster.
Consequently, in June 2023, the MAS issued a stricter set of rules for crypto companies. Due to several mishaps, the regulator is now taking a cautious approach to crypto. Nevertheless, Singapore boasts more than 700 Web3 companies, making it a crucial player in the growth of the crypto and Web3 economy.
Last month, London consultancy Henley & Partners published its ‘Crypto Wealth Report’. It placed Singapore at the top of the Crypto Adoption Index. The island nation received very high ratings from the company on a number of aspects, such as tax friendliness, public adoption and regulation.
