Monetary Authority of Singapore issues two crypto licenses
07:00, 1 October 2021
In a boost to its image as a cryptocurrency hub, the Monetary Authority of Singapore (MAS) has granted a unit of DBS Bank and an Australian cryptocurrency exchange the right to provide digital payment token (DPT) services.
DBS Bank’s brokerage arm, DBS Vickers (DBSV), will now be able to support asset managers and companies who choose to trade in DPTs directly through its DBS Digital Exchange (DDEx).
The Australian cryptocurrency exchange Independent Reserve will be able to offer local currency and cryptocurrencies services in Singapore.
DBS expects enhanced volumes
“Having received formal regulatory approval from MAS, DBSV is now in a better position to support institutional and corporate investors in tapping into the growing potential of digital assets as an investment class,” said Eng-Kwok Seat Moey, head of capital markets at DBS and chair of the DBS Digital Exchange, in a statement.
“We believe that DBSV’s licence, coupled with recent enhancements to DDEx, such as round-the-clock operations since August, could add to DDEx’s volumes in the coming months and accelerate growth momentum for DBS’ digital asset ecosystem,” she added.
Independent Reserve aims for institutions
According to Independent Reserve, the application for its license was subject to an examination by MAS to review its policies and procedures regarding customer protection mechanisms, transaction screening and compliance structures, as well as the robustness of its information technology services.
The exchange’s CEO, Adrian Przelozny, said in a statement that Singapore’s well-regulated environment would thoroughly address investor protection concerns, including the safe custody of assets, know your customer requirements and market manipulation, making it easier to provide cryptocurrency services to financial institutions that wish to trade digital assets.
“A well-regulated environment will benefit both investors and crypto industry stakeholders. With tailor-made rules for the crypto industry, Singapore currently has the clearest and most-detailed licencing requirements of any jurisdiction in Asia,” Przelonzy said.
While positioning itself as a territory that is open to the idea of cryptocurrency investments, MAS ensures regulations remain strict. Earlier this month, it asked Binance to stop providing payment services in Singapore