Cryptocurrency Exchange Independent Reserve has received an in-principle approval letter from the Monetary Authority of Singapore under the Payment Services Act for a Major Payment Institution Licence to function as a regulated provider for Digital Payment Token Services, making it Singapore’s first cryptocurrency exchange to function as a fully regulated virtual asset service provider.
Singapore’s exchange regulatory framework mandates them to offer appropriate consumer safeguards and adhere to anti-money laundering regulations, notably the infamous travel rule of the Financial Action Task Force.
Independent Reserve began its worldwide growth ambitions in late 2019, establishing its first overseas offices in Singapore to provide digital asset exchange and OTC trading services to Singapore residents and institutions. According to CEO Adrian Przelozny, the MAS’s local regulatory framework allowed them to join the market with remarkable confidence. Przelozny further stated that,
To be one of the first cryptocurrency exchanges to be notified by MAS of our in-principle licensing approval is a reflection of the robustness of the policies, procedures and risk management systems that we have put in place to guide our day-to-day operations
Related: CoinJar collaborates with Mastercard to provide Australia’s first Bitcoin Card
In addition to the MAS’s regulatory clarity, the Financial Times claims that perceived geopolitical dangers in Hong Kong have boosted Singapore’s attractiveness among crypto and blockchain producers, as the latter comes under growing control from Beijing. In Singapore, over 170 exchange applicants are allegedly seeking permits, including Binance and Gemini. Independent Reserve submitted its application in April of last year.
Jihan Wu, the co-founder and former CEO of Bitcoin mining giant Bitmain, recently commented on global crypto legislative developments, citing Singapore as a great example of a jurisdiction that was ideally positioned to act as a center for crypto innovations.
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