Cryptocurrency companies Circle and Paxos have received approval from the Monetary Authority of Singapore (MAS) to operate with digital assets in the country.
Circle, the issuer of the USDC stablecoin, will now be able to issue the cryptocurrency, as well as make domestic and international payments with it in Singapore. As for Paxos, which issues the USDP stablecoin, this company issued license to provide services related to cryptocurrency payments.
Circle and Paxos received a green light from the regulator after MAS proposed tightening controls on virtual asset service providers (VASPs) and stablecoin issuers under the Singapore Payment Services Act (PSA). This law was passed by the Singapore Parliament in 2019, giving MAS the power to regulate payment systems and oversee payment service providers.
Circle Strategic Development Director Dante Disparte believes that licensing crypto companies will expand the potential of crypto assets in the payments sector. In addition, it will stimulate the development of Singapore’s economy by modernizing the country’s legal and regulatory framework.
Circle co-founder and CEO Jeremy Allaire said that obtaining a license to operate in one of the world’s leading financial centers is essential to Circle’s geographic expansion. Paxos Asia CEO Rich Teo added that with the control of MAS, the company will be able to securely accelerate the adoption of digital assets in partnership with the world’s largest companies.
Singapore aims to establish itself as one of the most favorable jurisdictions for the cryptocurrency industry. In August, the Singapore regulator issued a license to the Australian stock exchange Independent Reserve, which allowed it to operate legally in Singapore. And in September, the largest Singapore bank DBS provided an opportunity for accredited clients to trade crypto assets.
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