- Singapore has taken the first step in formalizing crypto exchanges, as the crypto industry remains cautious of China.
- Independent Reserve, an Australian crypto exchange, became the first cryptocurrency exchange in Singapore to receive “approval in principle”.
- The approval of the crypto exchange took place as per the Payments Services Act implemented in the year 2020.
In a striking development, Singapore has taken the first step in formalizing crypto exchanges, as the crypto-curious city-state steps up its challenge to rival Hong Kong as a digital currency hub.
Australian exchange firm Independent Reserve has received the approval “in principle” from the Monetary Authority of Singapore (MAS). Notably, it is the first exchange firm to get permission to operate in Singapore among hundreds of others in the line.
Independent Reserve was given the approval under the Payments Services Act that was implemented in 2020. It states that the regulations must be followed by all the cryptocurrency exchanges seeking approval to operate in the country.
The approval for the Australian exchange means that it will now be operating as a Virtual Asset Service Provider (VASP) in the city-state. As a VASP, the company will also be eligible to receive a Major Payment Institution Licence.
Moreover, with this license, the exchange firm will be officially allowed to undertake the distribution and exchange of digital assets.
Crypto Growth in Singapore
When the CEO of Independent Reserve, Adrian Przelozny, was asked the reason for choosing Singapore as the firm’s first stop for seeking approval, he said that the country has lots of prospects and favors a climate that is crypto-friendly.
Moreover, the approval of Digital Payment Token licenses in Singapore in the future will continue to ensure the city-state’s competitive position as a financial hub in Asia.
Due to better clarity in regulatory compliance in the country, numerous potential investors and crypto enthusiasts are choosing Singapore as headquarters for their crypto exchanges and projects related to cryptocurrencies.
Independent Reserve filed its approval request back in April 2020, and it seems that some 170 exchange applicants, including Binance and Gemini, are reportedly waiting to have their turn.