- Singapore has granted MPI licenses to 14 virtual asset firms so far.
- The Southeast nation recently emerged as a leading crypto hub as per a report.
Singapore recently granted an in-principal approval for a Major Payment Institution (MPI) license to cryptocurrency trading firm and liquidity provider GSR’s Singaporean subsidiary, GSR Markets.
GSR announced the approval via a press release on 2 October. It stated that it had met the stringent compliance requirements set by the Monetary Authority of Singapore (MAS) and is working towards securing a complete license to operate in Singapore.
The MPI license allows GSR to deliver crypto and fiat-related services to residents of the city state.
Founded in 2013 in New Jersey, MSR engages in over-the-counter (OTC) crypto trading alongside derivatives, market making, and venture capital investments.
MSR is not the only firm to receive the MPI license by the MAS. In fact, Coinbase [COIN] secured the same license as one received by MSR on the same day.
So far, the MAS has granted MPI licenses to 14 virtual asset firms, including Blockchain.com, Circle, and Ripple [XRP].
Singapore overcomes setbacks to emerge as a leading crypto hub
Remember that both the crypto shockers in May and November last year affected the crypto industry in Singapore drastically.
Three Arrows Capital (3AC), a Singapore-based crypto hedge fund, went bankrupt when Terra Luna [LUNA] collapsed in May 2022. Terra’s collapse also led to a Singapore-based crypto lender Hodlnaut losing around $190 million.
The state’s investment fund Temasek Holdings got a shock when FTX [FTT] collapsed in November 2022. Temasek had invested $275 million in the exchange earlier. The fund wrote off its entire investment in FTX within a few days of the disaster.
Consequently, in June 2023, the MAS issued a stricter set of rules for crypto firms. Due to several mishaps, the regulator is now taking a cautious approach to crypto. Nonetheless, Singapore boasts more than 700 Web3 companies, making it a pivotal player in the growth of the crypto and Web3 economy.
Last month, the London-based consultancy firm Henley & Partners published its “Crypto Wealth Report.” It placed Singapore at the top of its Crypto Adoption Index. The island nation received very high ratings from the firm in a number of aspects such as tax-friendliness, public adoption, and regulatory environment.
