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Independent Reserve gets the first in-principle approval that gives hope to around 170 crypto exchange applicants waiting to receive an official operating license in Singapore.
Independent Reserve, an Australian crypto exchange founded in 2013, has become the first cryptocurrency exchange in Singapore to receive an āin-principle approvalā to operate as a fully regulated virtual asset service provider (VASP).
In a letter from the city-stateās de facto central bank, the Monetary Authority of Singapore (MAS), the exchange was approved under the terms of the Payments Services Act, which came into effect in January 2020 and provides clear-cut rules and regulations for crypto exchanges and service providers seeking to operate locally. Since January, VASPs awaiting their applicationsā approval have been permitted to continue to operate under the exemption.
Using the specific terms of the Singaporean framework, Independent Reserve has now been approved, in principle, for receipt of a Major Payment Institution Licence that allows it to provide Digital Payment Token Services. Singaporeās regulatory regime for exchanges requires them to provide adequate consumer protections and comply with Anti-Money Laundering measures, including the Financial Action Task Forceās notorious ātravel rule.ā
Commenting on the choice of Singapore as the first jurisdiction chosen for the exchangeās overseas expansion, Independent Reserve CEO Adrian Przelozny said that MASā licensing process āprovides certainty for us as industry participants and security for our customers.ā The future granting of Digital Payment Token licenses in Singapore will, he claimed, continue to ensure the city-stateās competitive position as a financial hub in Asia.
In addition to the regulatory clarity forthcoming from MAS, the Financial TimesĀ argued that Singaporeās popularity among crypto and blockchain developers has in part been accelerated by perceived geopolitical risks in Hong Kong, as the latter comes under increasing influence from Beijing. Some 170 exchange applicants, including Binance and Gemini, are reportedly awaiting their licenses in Singapore. Independent Reserveās own application was filed back in April of last year.
Related: 43% of Singaporeans own crypto, according to Independent Reserve survey
In recent comments on crypto regulatory developments worldwide, Jihan Wu, co-founder and ex-CEO of Bitcoin (BTC) mining giant Bitmain, cited Singapore as a prime example of a jurisdiction that was well-positioned to serve as āa hub for crypto innovations.ā
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