- Singapore has granted an institutional license to Paxos, a US-based blockchain infrastructure protocol.
- With this license, Paxos will offer blockchain and digital asset products and services to companies in Singapore.
- Paxos became the only US-based blockchain infrastructure protocol to receive such a license.
- In late 2021, MAS rejected over 100 out of 170 applicants due to the tighter regime, but recently has been working to regain its reputation as crypto-friendly.
News! Paxos has secured its Major Payments Institution license from @MAS_sg! This makes Paxos the first US-based global #blockchain infrastructure provider to receive approval. We’re the most comprehensively regulated digital asset platform. Learn more: https://t.co/6vorIMpFkm
— Paxos (@PaxosGlobal) November 2, 2022
According to a Tuesday announcement by the firm, the license was issued by the Monetary Authority of Singapore (MAS), a regulatory agency in the country. As reported, Paxos will offer blockchain and digital asset products and services to companies in Singapore with this license in compliance with the 2019 Payment Services Act.
The Singapore parliament passed this act to regulate payment mechanisms efficiently. Also, as enacted, the act allows MAS to monitor payment service providers’ activities.
Meanwhile, Paxos, with its latest license, emerged as the only US-based blockchain infrastructure protocol to achieve such a milestone. Prior to this, Paxos also achieved the first limited-purpose trust charter for digital assets from the New York Department of Financial Services in 2015. Further, the firm obtained the first preliminary de novo National Trust bank charter from the US Office of the Comptroller of the Currency (OCC).
Paxos Promises to Serve in Line With Regulatory Frameworks
According to the MAS chief finance officer, Sopnendu Mohanty, MAS will be “brutal and unrelentingly hard” on “bad behavior” from the crypto industry. As a result of the tighter regime, MAS rejected over 100 out of 170 applicants in late 2021.
However, Singapore has recently been working to regain its reputation as a crypto-friendly country.
Last month, Coinbase, another U.S.-based crypto exchange, secured a license for digital payment tokens in Singapore along with 17 other companies. Also, last week, the MAS proposed new stablecoin rules that included setting capital and reserve requirements, as well as prohibiting lending and other activities. The public can comment on these proposals until the end of next month.
Meanwhile, Rich Teo, co-founder and CEO of Paxos Asia, asserted that Paxos is committed to innovating within existing regulatory standards.
“We believe blockchain and digital assets will revolutionize finance for everyone around the world, but development of this technology must have clear oversight and consumer protections. We’re excited to have MAS as our regulator,” Rich Teo stated. “Paxos will safely accelerate consumer adoption of digital assets globally in partnership with the world’s biggest enterprises.”
On the Flipside
- Despite Singapore trying to be more liberal towards digital assets, the country continues to take precautions regarding retail investors. DBS, Singapore’s largest bank, has recently limited its crypto trading services to accredited investors only.
Why You Should Care
Following previous strict regulations the country had to go through, the recent measures from Singapore’s government may encourage more crypto firms to relocate to the country.
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