European cryptocurrency exchange Bitstamp has received in-principle approval for its license application to offer digital asset services in Singapore.
The approval, granted by the Monetary Authority of Singapore (MAS), allows Bitstamp to establish its presence in key markets in the Asia-Pacific region and globally, according to a Wednesday report by The Straits Times.
Previously operating under an exemption from the Payment Services Act, Bitstamp has now obtained preliminary approval for a major payment institution license.
Bitstamp to Offer Services to Users in Singapore
This license will enable the exchange to provide cross-border money transfer and digital payment token exchange services to customers in Singapore and selected countries across the region.
Leonard Hoh, Bitstamp’s Asia-Pacific General Manager, highlighted the positive regulatory and commercial landscape in Singapore, which supports the institutionalization and broader adoption of digital assets.
“We know that we have a strong product fit for the developing payments and stablecoin arena, especially when partnering with institutions seeking out counterparties that are similarly licensed in highly regarded jurisdictions like Singapore.”
The in-principle approval arrives at a time when the crypto market is experiencing a rebound.
With the European Union expected to solidify its regulatory framework for cryptocurrencies in 2024 and the United States Securities and Exchange Commission (SEC) approving Bitcoin exchange-traded funds (ETFs), the market is poised for further growth and mainstream adoption.
Bitstamp has been a critical infrastructure provider for Bitcoin markets and other large-cap cryptocurrencies since 2011.
The exchange is among the six platforms that provide market data for the CME CF Bitcoin reference rate, which is used by spot Bitcoin ETFs in the United States and other market participants.
In December 2023, Bitstamp played a role in the listing of Societe Generale-Forge’s stablecoin, EUR CoinVertible (EURCV), on its platform.
This partnership further solidified Bitstamp’s position as a trusted and reliable exchange.
Bitstamp’s expansion has been supported by various licenses and registrations obtained over the years.
Since securing its first license in Luxembourg in 2016, the exchange has now acquired over 50 licenses and registrations in global markets, including the United Kingdom, the Netherlands, and New York.
Finance-Savvy Singaporeans Invest in Crypto
More than half of finance-savvy Singaporeans have embraced cryptocurrency and consider it the future of finance.
A recent report by Seedly and Coinbase, conducted in the fourth quarter of 2023 and encompassing over 2,000 adults, found that 57% of respondents currently hold digital assets.
The majority of respondents said they have invested between US$1,000 and $25,000.
Singapore has been actively engaging with global financial authorities in the realm of digital currencies.
In September 2023, the Monetary Authority of Singapore (MAS) completed a joint test of cross-border trading and settlement of wholesale central bank digital currencies in collaboration with the Bank for International Settlements and the central banks of France and Switzerland.
Back in July, Singapore also revealed plans to impose a trust requirement on cryptocurrency exchanges in a bid to instill confidence in the market and protect investors from potential losses.
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