Circle and Paxos get regulatory approvals by MAS

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The Central Bank of Singapore, Monetary Authority of Singapore (MAS), has issued approval to Circle and Paxos. Both the stablecoin issuers announced this on November 2, with Circle receiving a license for a payment institution. It could issue crypto through this and offer cross-border payment services. Paxos could offer digital payment token services henceforth with its license.

Around two weeks back, MAS released two consultation papers concerning different proposals to regulate digital payment token service providers and other issuers of stablecoin under the Singapore Payment Services Act (PSA). Circle and Paxos both issue stablecoins pegged to the United States dollar, and the same would be issued now in Singapore.

Representatives of both Paxos and Circle welcomed this step, with Paxos Asia CEO Rich Theo saying, "We're excited to have MAS as our regulator, and with their oversight, we'll be able to safely accelerate consumer adoption of digital assets globally in partnership with the world's biggest enterprises." The Chief Strategy officer of Circle, Dante Disparte, hoped this would open up crypto and the open payment system's huge potential for greater economic growth in the country. 

Jeremy Allaire, Co-Founder and CEO of Circle, also claimed that this decision would be instrumental to Circle's regional and global expansion plans in raising global economic prosperity. "We are honoured to receive the in-principle license, and we look forward to more collaboration with the MAS to support the thriving crypto and blockchain ecosystem as well as the advancement of fintech innovation in Singapore," he said.

In the past, though, MAS has been strict on the crypto industry with regular clampdowns. With Singapore's perception of being a crypto-friendly country, MAS is fighting to take back this reputation. On the other hand, DBS Bank has taken decisions cautiously, allowing retail investors who only meet strict criteria to trade and invest in crypto.

Earlier this year, a few more digital asset companies were also given regulatory approvals, including CryptoCom, Genesis, and Sparrow. Clients in Singapore can therefore access multiple settlement solutions within the Payment Services Act, including Digital Payment Token (DPT) Services. It remains to be seen whether Singapore will emerge as a hub of crypto with the increased involvement of retail investors.

Shashank is founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist.