On October 3, Sygnum Singapore, a subsidiary of the Switzerland-based cryptocurrency bank Sygnum, announced that it had received a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This license allows Sygnum Singapore to offer crypto brokerage services to accredited investors and institutions in Singapore.
The approval process was relatively swift, with Sygnum Singapore transitioning from in-principle approval to a full license in just four months. This regulatory approval builds upon their existing capital markets services license and allows them to provide digital payment token (DPT) trading services to their clients.
Sygnum Singapore plans to expand its regulated offerings to other markets in the Asia-Pacific (APAC) region, such as Hong Kong, as a result of receiving the MPI license. They see Singapore as a crucial market for their services, given the growing interest in cryptocurrency among Singaporeans.
It’s worth noting that the Securities and Futures Commission (SFC) of Hong Kong has recently introduced cryptocurrency exchange licensing to bolster investor protection and combat illicit activities. In a strict warning, the SFC has cautioned unlicensed cryptocurrency exchanges engaging in these activities that they may face criminal charges, as reported by Todayq News on August 8, 2023.
Having a major payment institution (MPI) license means you can offer multiple payment services without being bound by specific transaction limits. There is no need to worry about a monthly cap of S$3 million for any single payment service or a combined monthly limit of S$6 million for two or more payment services.
Must Read: South Africa plans to impose a licensing scheme for crypto firm
Additionally, there’s no restriction on having up to S$5 million of outstanding e-money on any given day. This freedom allows you to handle a significant volume of transactions and e-money without these numerical constraints. As of now, Sygnum manages approximately $3.5 billion in assets under management across more than 60 countries, with a presence in Luxembourg and Abu Dhabi.
It’s worth noting that on October 1, Coinbase also announced the approval of its MPI license application from MAS. This license allows MPI-licensed firms, like Sygnum and Coinbase, to conduct payment services without being subjected to transaction limits for payment services in Singapore. Coinbase expressed its interest in the Singaporean market, as more than 30% of Singaporeans were found to be current or past owners of cryptocurrencies in a recent survey.
