Singapore’s first fundamental approval of a crypto exchange

Independent Reserve, an Australian cryptocurrency exchange based in 2013, was the first cryptocurrency exchange in Singapore to obtain “fundamental approval” to function as a totally managed digital asset service (VASP) supplier.

In a letter from the city-state’s de facto central financial institution, the Monetary Authority of Singapore (MAS), the exchange was accepted below the phrases of the Payment Services Act, which went into impact in January 2020, and has clear guidelines and laws for exchanges and the Service of cryptocurrencies contains suppliers who wish to be lively regionally. Since January, VASPs awaiting approval of their functions have been allowed to proceed working below the exemption.

Pursuant to the particular provisions of the Singapore Framework, the Independent Reserve Unit has been typically licensed to acquire a license for a main paying agent that allows it to supply digital fee token companies. Singapore’s regulatory system for exchanges requires them to supply ample client safety and anti-money laundering measures, together with the infamous “travel rules” of the Financial Action Task Force’s notorious “travel rules”.

Regarding the choice of Singapore because the first chosen jurisdiction for the exchange’s abroad growth, Adrian Przelozny, Executive Director of the Independent Reserve stated that the MAS licensing course of “provides security for us as industry participants and security for our customers”. The future issuance of digital fee tokens in Singapore will additional safe the city-state’s aggressive place as a monetary middle in Asia, he stated.

In addition to the regulatory readability of the MAS, the Financial Times argues that Singapore’s reputation with crypto and blockchain builders was accelerated partially by perceived geopolitical dangers in Hong Kong because the latter got here below rising affect from Beijing. Around 170 inventory exchange candidates, together with Binance and Gemini, are stated to be ready for his or her licenses in Singapore. The Independent Reserve’s personal utility was re-submitted in April final 12 months.

Related: 43% of Singaporeans personal crypto, in accordance with an impartial reserve ballot

In his latest commentary on regulatory developments in cryptocurrencies around the globe, Jihan Wu, co-founder and former CEO of Bitcoin (BTC) mining large Bitmain, cited Singapore as a prime instance of a jurisdiction effectively positioned to behave as a “hub for crypto innovations ”. “