Written by FirmEU
The amendments have broadened the scope of activities to include services such as providing custodial wallet services, facilitating transfers of digital payment tokens (DPTs), and other activities related to crypto assets. To offer these services, DPT providers must be registered and licensed, with many having obtained the Major Payment Institution (MPI) license to provide such services. These DTP service providers range from crypto exchanges and stablecoin operators to traditional financial institutions.
The Monetary Authority of Singapore recently granted Hodlnaut a Major Payment Institution (MPI) license, allowing the cryptocurrency platform to offer token swaps and other services such as account issuance, cross-border money transfers, and merchant acquisitions. This marks an important milestone in the regulation of crypto assets in Singapore, as this type of license is usually reserved for traditional financial institutions.
In light of the FTX exchange scandal, it has become more evident that crypto asset regulation is necessary. As with traditional finance industries, there are significant regulations for activities such as trading, banking, broking, and issuance. However, this same level of governance hasn’t been seen yet in the crypto sector around the world. Singapore desires to develop into a leading crypto hub and the Monetary Authority of Singapore (MAS) is striving to utilize digital assets to boost efficiency, lower danger in financial operations, and apply programmable money.
Are you looking to get involved in the crypto ecosystem by setting up a crypto business in Singapore? The process for obtaining a license for such a venture can be complex, and FirmEU is here to help guide you through the incorporation and licensing application process. FirmEU has been active in the crypto space for a long period of time, having assisted dozens of crypto entrepreneurs. Check out our Crypto Service page here.
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