Another crypto exchange receives regulatory node in Singapore
- 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.
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.