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Gemini Secures In-Principle MPI License Approval in Singapore

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  • Gemini sеcurеs in-principlе аpprovаl for а Mаjor Pаymеnt Institution licеnsе from Singаporе’s MAS.
  • Thе аpprovаl еnаblеs thе еxchаngе to еnhаncе digitаl pаymеnt sеrvicеs аnd cross-bordеr trаnsfеrs in Singаporе.
  • Gemini аims to doublе its Singаporе workforcе, rеflеcting strong commitmеnt to locаl mаrkеt growth.

In а significаnt dеvеlopmеnt for its Asiа-Pаcific аmbitions, cryptocurrеncy еxchаngе Gemini hаs sеcurеd in-principlе аpprovаl from thе Monеtаry Authority of Singаporе (MAS) for а Mаjor Pаymеnt Institution (MPI) licеnsе. Announcеd on Octobеr 29th, 2024, this rеgulаtory nod pаvеs thе wаy for Gemini to offеr digitаl pаymеnt tokеn sеrvicеs аnd fаcilitаtе cross-bordеr monеy trаnsfеrs within thе islаnd nаtion.

Thе in-principlе аpprovаl mаrks а cruciаl milеstonе for thе еxchnаgе, solidifying Singаporе’s position аs thе hеаrt of its Asiа-Pаcific opеrаtions. Thе еxchаngе furthеr еmphаsizеd its commitmеnt to obtаining thе full MPI licеnsе, which would аllow it to offеr locаlizеd sеrvicеs tаilorеd to thе nееds of its Singаporеаn usеr bаsе.

Gemini
Source: Gemini

Gemini Expands Singapore Workforce

Whilе thе Unitеd Stаtеs rеmаins Gеmini’s lаrgеst mаrkеt аnd globаl hеаdquаrtеrs, its focus on Singаporе is undеniаblе. Sааd Ahmеd, hеаd of Gemini’s Asiа-Pаcific аrm, sаys thе еxchаngе is аctivеly sееking tаlеnt аcross compliаncе, еnginееring, product, аnd finаncе dеpаrtmеnts. A Strаits Timеs rеport indicаtеs thаt thе crypto еxchаngе currеntly hаs а tеаm of ovеr 40 pеoplе in Singаporе аnd аims to doublе thаt numbеr in thе nеаr futurе. This еxpаnsion rеflеcts its commitmеnt to thе Singаporеаn mаrkеt аnd its potеntiаl. 

“Wе’rе in thе procеss of rеlocаting to а lаrgеr officе spаcе to аccommodаtе our growing locаl tеаm,” аddеd Ahmеd. This movе signifiеs Gemini’s long-tеrm vision for Singаporе аnd its dеdicаtion to building а robust locаl prеsеncе.

Gemini Joins MPI License Holders

Obtаining thе full MPI licеnsе would bе а gаmе-chаngеr for Gеmini. It would аllow thеm to trаnscеnd thе stаndаrd volumе limits imposеd on pаymеnt institutions in Singаporе. Currеntly, licеnsеd firms cаnnot еxcееd а pаymеnt sеrvicе’s $2.2 million volumе limit or а combinеd monthly limit of $4.4 million for two or morе sеrvicеs. With thе MPI licеnsе, thеsе limitаtions would bе liftеd, grаnting thе еxchаngе grеаtеr opеrаtionаl flеxibility.

If аpprovеd, Gemini would join thе rаnks of еstаblishеd US-bаsеd crypto compаniеs likе Coinbаsе аnd Ripplе, both of which sеcurеd full MPI licеnsеs from MAS in Octobеr 2023. This movе by Singаporеаn аuthoritiеs dеmonstrаtеs а progrеssivе аpproаch towаrds fostеring innovаtion in thе digitаl аssеt spаcе, аttrаcting lеаding cryptocurrеncy firms to thеir shorеs.

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Singapore enforces Strict crypto rules beyond borders: 30 Days Deadline

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Singapore, known for its progressive stance on financial technology, has recently expanded its regulatory oversight on cryptocurrency-related activities. The Monetary Authority of Singapore (MAS) announced on Tuesday that it would now regulate custodial services and cross-border money transfers involving digital assets, even if the transactions do not occur within the city-state.

This move comes as an amendment to the Payment Services Act (PS Act), a framework designed to regulate payment service providers. Initially passed in 2021, the legislation aimed to provide regulatory clarity in the rapidly evolving digital asset landscape. However, the amendments, which were supposed to be enacted earlier, have only been implemented recently, reflecting the growing importance of regulating digital asset activities amidst global market volatility.

The expansion of regulatory oversight is seen as a significant step towards enhancing user protection and ensuring financial stability within the digital asset world. Angela Ang, a senior policy adviser at TRM Labs and former MAS regulator, hailed the move as a long-awaited clarification, particularly regarding custody services.

Crypto Regulations and Investor Protection

Under the new regulations, cryptocurrency service providers must adhere to stringent requirements. These include segregating customers’ assets in trust accounts, maintaining transparent records, and implementing robust systems and controls. These measures are aimed at safeguarding investors’ funds and mitigating the risk of financial malpractice within the industry.

Entities already engaged in crypto-related activities under the Payment Services Act must undergo a transition process within 30 days and submit a license application within six months. The application process entails providing an attestation report of compliance with anti-money laundering and counter-financing of terrorism requirements, validated by an external auditor within nine months.

MAS has made it clear that entities failing to comply with these regulations will be required to cease all crypto-related activities. This stringent enforcement underscores Singapore’s commitment to maintaining the integrity of its financial system while fostering innovation in the burgeoning crypto sector.

In conclusion, Singapore’s decision to expand regulatory oversight on crypto activities reflects its proactive approach to addressing the challenges posed by digital currencies. By implementing robust regulations, Singapore aims to strike a balance between fostering innovation and safeguarding investor interests in the rapidly evolving crypto landscape.

Singapore’s MAS Seeks Crypto Oversight Expansion with FIMA Bill Amendments

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In a significant move that could have far-reaching implications for crypto firms, the Monetary Authority of Singapore (MAS) is seeking expanded powers through the Financial Institutions (Miscellaneous Amendments) Bill 2024, currently under consideration by the country’s parliament.

The proposed amendments, as outlined in the Bill’s Explanatory Brief, were introduced by Minister of State Alvin Tan on behalf of Deputy Prime Minister Lawrence Wong. The bill aims to enhance and rationalize MAS’ investigative, reprimand, supervisory, and inspection powers across various Acts under its purview.

Key amendments include strengthening MAS’ investigative powers and allowing the authority to compel individuals to attend interviews and record statements. The power to enter premises without a warrant, a vital investigation tool, would also be expanded. Additionally, MAS seeks the ability to obtain a court warrant to seize evidence under the Insurance Act 1966, the Payment Services Act 2019, and the Financial Services and Markets Act 2022.

Crypto Oversight: MAS Targets Unregulated Businesses By CMSL Holders

One notable change is the extension of MAS’ powers to issue directions to capital markets services license holders (CMSL holders) engaging in unregulated business, such as trading bitcoin futures and other payment token derivatives on overseas exchanges. The bill would empower MAS to issue written directions regarding the minimum standards and safeguards for such activities, aiming to mitigate contagion risks to regulated activities.

Another amendment clarifies MAS’ reprimand powers, making it explicit that the authority could reprimand individuals who were “relevant persons” at the time of the misconduct, even if MAS no longer regulates them or has left the employ of a regulated financial institution.

The bill also seeks to enhance supervisory and inspection powers across various Acts, ensuring consistency and alignment with the Banking Act 1970. Key changes include approval requirements for appointing key persons in recognized market operators and clearing houses, refined approval requirements for controllers of CMSL holders, and expanded powers for MAS to approve agents appointed by foreign regulators for inspections.

The proposed legislation follows public consultation, incorporating feedback into the bill where appropriate. If passed, these amendments could significantly shift MAS’ regulatory approach, particularly affecting crypto firms engaging in unregulated businesses.

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Avalanche Surges 70% Amidst Proof-of-Concept Unveiling – Potential for $30 Breakout Looms

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Onyx, by J.P. Morgan and Apollo Global, has revealed a transformative proof-of-concept with Avalanche under the Monetary Authority of Singapore’s Project Guardian. The project, announced via a joint press release, holds the potential to revolutionize asset and wealth management through the application of blockchain, smart contracts, and tokenization.

The proof-of-concept showcases the capacity of these technologies to streamline portfolio management, particularly for traditionally challenging alternative assets. According to a statement on Avalanche’s official Twitter account, the unveiling aligns with AvaLabs’ mission to digitize and tokenize global assets while leveraging Avalanche’s speed, scalability, and customizability.

Project Guardian, initiated in May 2022, aims to explore use cases for asset tokenization. Notably, the Monetary Authority of Singapore conducted its first test in November of the previous year, where J.P. Morgan, DBS Bank, and SBI Digital Asset Holdings utilized the Aave protocol on Polygon for foreign exchange and government bond transactions on the Ethereum network.

Avalanche Surges Price Towards $30

The announcement has significantly impacted AVAX, the native token of the Avalanche ecosystem. Currently, Avax is being traded at $21.67, showing a 14% surge in price over the past 24 hours, representing a substantial 70% rise compared to the previous week. On November 15, it reached its peak at $24, according to CoinMarketCap.

AVAX 7D graph coinmarketcap 1
Source: CoinMarketcap

Avalanche’s current strategy involves burning 100% of the revenue generated from transaction fees. The recent spike in network traction from gaming adoption has seemingly accelerated the AVAX burn rate, as illustrated by the chart indicating the burning of 38,057 AVAX in the last 30 days.

image 62 1
Source: AVASCAN

Data from on-chain tracker StakingRewards reveals a surge in AVAX staking, with 255.91 million AVAX staked across various smart contracts as of November 16. This represents an increase of 36 million AVAX deposited into smart contracts within the last 10 days, coinciding with the 150% price breakout over the last 30 days.

image 62 2
Source: StakingRewards

However, the bears may seek to challenge the current optimistic trend. Breaking the initial resistance at $23 is crucial for confidence in reclaiming $30. The presence of 402,470 holders who bought 2.95 million AVAX at an average price of $22.98 creates a sell-wall that the bulls must overcome to reach the predicted $30 mark.

Analysts caution that a dip below $12 could threaten the current uptrend. Nevertheless, the 771,030 holders who acquired 7.97 AVAX at the minimum price of $14.96 may provide initial support, preventing a more significant downturn if they choose to HODL firmly.

Additionally, a crypto analyst pointed out that weekly decentralized exchange (DEX) volumes on AVAX are trending toward yearly highs, with Trader Joe, Uniswap, Woofi, Pangolin, and Dexalot leading the way.

image 62 3

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MAS Exec Excludes Crypto from Digital Money Race

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MAS’ senior executive has asserted that stablecoins and central bank digital currencies [CBDCs] are positioned as potential forms of digital currency, distinct from cryptocurrencies. Ravi Menon, the managing director, conveyed this perspective during the Singapore Fintech Festival, emphasizing the role of privately issued cryptocurrencies, CBDCs, well-regulated stablecoins, and tokenized bank liabilities in the future financial landscape.

Menon’s rationale for excluding traditional cryptocurrencies from this category lies in their perceived failure to meet the requisite criteria for digital money. He highlighted their shortcomings, citing poor performance as a medium of exchange or store of value, susceptibility to speculative price swings, and significant losses suffered by many cryptocurrency investors.

MAS
Pic Source: @MAS_sg

There are four contenders for digital money. Cryptocurrencies have failed the test of digital money because they have performed poorly as a medium of exchange or store of value, their prices are subject to sharp speculative swings, and many investors in cryptocurrencies have suffered significant losses.

These remarks have attracted attention, particularly considering Singapore’s status as a prominent crypto hub in Asia. Menon illustrated his point in a keynote speech by referencing Paxos, a blockchain infrastructure platform that recently launched a stablecoin pegged to the USD in Singapore after securing approval from the Monetary Authority of Singapore [MAS].

As reported by TronWeekly, the new stablecoin aligns with MAS’ regulatory framework for stablecoins, unveiled on August 15, which outlines criteria such as value stability, capital, and redemption at par for issuers. MAS sees well-regulated stablecoins as a promising digital currency that complements CBDCs and tokenized bank liabilities.

MAS Managing Director Champions Project Guardian

Menon also highlighted Project Guardian, a collaborative effort between MAS and industry partners to tokenize foreign exchange, bonds, and funds. This initiative aims to enhance global liquidity, streamline cross-border transactions, and improve operational efficiency in financial markets, with trials involving major global banks.

Menon envisions a broader network of interoperable systems that facilitate instantaneous and seamless payment, clearing, and settlement. He emphasized the transformative potential of digital assets, identifying two critical features that could fundamentally change financial transactions. However, Menon expressed reservations about existing digital asset networks, including public permissionless blockchains and private permissioned blockchains, citing challenges such as accountability, legal uncertainty, and interoperability issues that limit their suitability as a global digital asset infrastructure.

USDC Revolutionizes Financial Landscape with Singapore Mint

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Circle, a leading global financial technology company, has unveiled Circle Mint, a platform that facilitates seamless and cost-effective USDC minting for businesses and individuals in Singapore. This groundbreaking initiative marks a pivotal step towards expanding access to digital currencies in the Asia Pacific region.

Circle Mint is a secure and compliant platform that allows users to instantly convert fiat funds from their bank accounts to USDC, the world’s second-largest stablecoin pegged to the US dollar. With zero minting fees and near-instant settlement, Circle Mint eliminates the complexities and inefficiencies associated with traditional minting methods.

Circle Mint operates under Circle Singapore’s Major Payments Institution (MPI) license granted by the Monetary Authority of Singapore (MAS). This adherence to stringent regulatory standards ensures that transactions are conducted with the utmost transparency, security, and compliance.

Effortless USDC Integration for Singapore Businesses

The introduction of Circle Mint in Singapore marks a significant step forward in expanding access to digital currencies in Asia Pacific. Businesses can now effortlessly integrate USDC into their operations, enabling them to explore new avenues for cross-border payments, treasury management, and decentralized finance applications.

Circle Mint’s launch in Singapore is a testament to Circle’s unwavering commitment to fostering the growth and adoption of digital currencies. As the world of finance continues to evolve, Circle remains at the forefront, shaping the future of money and empowering individuals and businesses to embrace the boundless possibilities of digital assets.

With Circle Mint, businesses in Singapore can now seamlessly access USDC, empowering them to explore the transformative potential of digital currencies and shape the future of finance in the region.

MAS Pioneers Large-Scale Asset Tokenization: Details

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The Monetary Authority of Singapore, or MAS, has rolled out Project Guardian, a collaborative initiative with the financial industry aimed at expanding asset tokenization initiatives and building foundational capabilities to scale tokenized markets. In accordance with the press release, the project seeks to accelerate institutional adoption of digital assets, aiming to enhance liquidity, unlock investment opportunities, and improve the efficiency of financial markets.

Under Project Guardian, an industry group consisting of 17 financial institutions [FIs] has set the ball rolling by initiating five industry pilots to test promising asset tokenization use cases. These trials aim to integrate across the capital markets value chain, including listing, distribution, trading, settlement, and asset servicing. Notable initiatives include trials by Citi, T. Rowe Price Associates, Inc., and Fidelity International to explore efficient mechanisms for pricing and executing bilateral digital asset trades.

Below is the list released by MAS showing interop contributors including DBS, HSBC, Onyx by J.P. Morgan, SBI Digital Asset Holdings, Schroder, Standard Chartered, Swift, UBS, UOB, Ava Labs, Chainlink, and LayerZero.

MAS
MAS Pioneers Large-Scale Asset Tokenization: Details 8

Additionally, MAS is collaborating with international policymakers and financial institutions on a new initiative called Global Layer One [GL1]. GL1 aims to design an open digital infrastructure that will host tokenized financial assets and applications, facilitating seamless cross-border transactions and trading across global liquidity pools while adhering to regulatory requirements. The International Monetary Fund [IMF] staff has joined Project Guardian’s policymaker group, offering an international perspective on policies and legal issues related to cross-border platforms.

MAS Chart New Waters

The Deputy Managing Director of MAS, Mr. Leong Sing Chiong, emphasized the success of Project Guardian’s industry pilots in demonstrating the seamless trading, distribution, and settlement of tokenized financial assets across borders. To fully realize the potential of tokenized markets, MAS believes a scalable digital infrastructure is crucial and welcomes additional stakeholders to contribute to the development of the GL1 initiative.

In the previous month, Singapore’s MAS unveiled its intention to collaborate with Japan, Switzerland, and the United Kingdom to facilitate discussions on legal, policy, and accounting aspects related to digital assets. The initiative aims to bolster the development of cross-border digital assets, encourage the implementation of digital asset pilot programs within regulatory sandboxes, and foster the exchange of knowledge among regulatory bodies and industries.

MAS Partners With Japan And Switzerland To Boost Digital Asset Regulation

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In a game-changing maneuver, the Monetary Authority of Singapore (MAS) is poised to lead the charge in crypto-centric collaboration with influential European and Japanese counterparts. This revelation, unveiled by the distinguished Chinese journalist Colin Wu on X, represents a major leap forward in digital assets.

According to a recent report, MAS is joining forces with the Financial Services Agency of Japan (FSA), the Swiss Financial Market Supervisory Authority (FINMA), and the United Kingdom’s Financial Conduct Authority (FCA). Together, they aim to spearhead joint digital asset pilots, specifically focusing on fixed income, foreign exchange, and asset management products.

This initiative stems from Singapore’s ongoing Project Guardian, a landmark venture launched in 2022. Project Guardian saw Singapore’s central bank team up with 15 financial institutions to conduct pilots on asset tokenization, showcasing the substantial potential for enhanced transaction efficiency.

MAS And Global Partners Advance Digital Finance

The consortium’s objectives include the initiation of pivotal policy and accounting dialogues, the identification of potential risks and legal voids related to digital assets, and the exploration of common standards for designing digital asset networks. Additionally, the group will delve into best practices and regulatory sandboxes, furthering education in the digital currency sector.

Leong Sing Chiong, the Deputy Managing Director of Markets and Development at MAS, emphasized the collaborative effort’s overarching goal to delve deeper into understanding the multifaceted landscape of digital asset innovation, with a keen focus on both its potential opportunities and inherent risks. This strategic endeavor reflects a dedicated commitment to advancing knowledge and expertise in this dynamic crypto ecosystem.

Singapore has steadfastly committed to aligning with international financial authorities within the digital currency domain. In a momentous feat that unfolded in September 2023, MAS triumphantly completed a collaborative examination encompassing cross-border trading and settlement of wholesale central bank digital currencies. 

This pioneering venture, executed in conjunction with the Bank for International Settlements and the central banks of France and Switzerland, not only revalidated Singapore’s standing as a frontrunner but also underscored its vanguard role in shaping the ever-evolving landscape of digital finance.

Ripple’s Major Milestone: Full MPI License Granted By Singapore’s MAS

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Ripple, a prominent player in the blockchain and digital payments world, has joined the ranks of high-profile web3 companies granted an MPI (Major Payments Institution) license by the Monetary Authority of Singapore (MAS). This move follows in the footsteps of Circle, a stablecoin issuer, which secured its license in June, and major cryptocurrency exchange Coinbase, which received approval on October 2, as reported by TronWeekly.

Today, Ripple announced that its subsidiary in Singapore, Ripple Markets APAC Pte Ltd, has successfully obtained its full MPI license to offer digital payment token services within the country. The development signifies Singapore’s unwavering commitment to fostering crypto innovation and staying at the forefront of the rapidly evolving blockchain landscape.

The company received in-principle approval for its MPI license application from MAS earlier this year. The company’s press statement emphasized the significance of this milestone, highlighting how it underscores the practical utility of cryptocurrency solutions for businesses and financial institutions. This achievement represents a significant stride toward the broader adoption of digital assets.

Singapore has earned a reputation as a global leader in pioneering digital asset regulation. The country’s forward-thinking approach makes it an ideal destination for businesses and financial institutions looking to harness the potential of cryptocurrencies for cross-border payments, crypto liquidity, and central bank digital currencies.

Ripple’s Commitment To Singapore

Brad Garlinghouse, the CEO of Ripple, expressed his appreciation for Singapore’s pivotal role in the company’s global operations:

Since establishing Singapore as our Asia Pacific headquarters in 2017, the country has been pivotal to Ripple’s global business. We have hired exceptional talent and local leadership, doubling headcount over the past year and plan to continue growing our presence in a progressive jurisdiction like Singapore.

Global finance le­aders are increasingly acknowle­dging the lasting importance of digital assets. According to a survey, 90% of these leade­rs believe that blockchain and digital asse­ts will greatly impact business, finance, and socie­ty within the next three­ years. Furthermore, nearly half of Asia Pacific finance leaders have­ plans to integrate cryptocurrency into cross-borde­r payments.

However, Digital payments are­ gaining momentum throughout the Asia Pacific region, signifying Ripple­’s prioritization of this area for its global payment solutions. The surge­ in cashless transactions by 109% expected by 2025 underscores the incre­asing significance of digital payment options in the re­gion.

Coinbase Singapore Secures Key License Amid Crypto Surge

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Coinbase Singapore has achieved a significant milestone by obtaining a Major Payments Institution (MPI) license from the Monetary Authority of Singapore (MAS). This achievement underscores Coinbase’s dedication to the Singaporean market and its commitment to providing Digital Payment Token services to both individuals and institutions in the region.

Coinbase Global Regulatory Success

The journey to this license was marked by regulatory challenges, but Coinbase’s perseverance and compliance efforts have paid off. Just days before this announcement, Coinbase International Exchange received regulatory approval from the Bermuda Monetary Authority (BMA) to offer perpetual futures to eligible non-US retail customers.

Furthermore, Coinbase registered as a cryptocurrency exchange and custodian wallet provider with the Bank of Spain, solidifying its presence in the European market, as reported by TronWeekly.

The late­st blog post reveals that Singapore, ofte­n considered a thriving center for the crypto and Web3 economy, holds a significant position in its global expansion strategy.

A significant number of individuals in Singapore­ are already involved in the­ crypto space, with 25% of surveyed Singapore­ans considering cryptocurrency as the future­ of finance. It makes Singapore a pivotal marke­t for the company.

In catering to the­ specific needs of the­ Singaporean market, the company has made­ tailored offerings. Earlier this ye­ar, funding options like PayNow and FAST bank transfers were­ introduced, enhancing the­ convenience for custome­rs to interact with the platform.

The integration of SingPass, Singapore’s trusted digital identity system, has streamlined the onboarding process. Additionally, Coinbase introduced no-fee USDC purchases with SGD to encourage adoption.

Beyond product offerings, the company is actively involved in growing the regional crypto economy. The company de­monstrate its commitment through initiative­s like training and hiring programs at the Singapore Te­chnology Center. 

Moreover, it establishe­d strong partnerships with industry associations such as ACCESS, the Singapore Finte­ch Association, and the Blockchain Association of Singapore. 

It is worth mentioning that Coinbase­ Ventures has also made re­gion-specific investments in Singapore­, thereby playing a significant role in bolste­ring the local ecosystem. Its collaboration with local developers, key partners, and initiatives like sponsoring Ethereum Singapore and conducting workshops at prominent universities underscores its commitment to community engagement and education.

However, granting the MPI license by MAS validates Coinbase’s operations and signifies a commitment to the crypto and Web3 community in Singapore. Coinbase emphasizes its dedication to working closely with regulators in key countries as part of its international expansion, with VASP registrations achieved in multiple European countries.