Singapore regulators have granted a Major Payment Institution (MPI) license to crypto market maker GSR Markets, establishing the company as among the initial recipients of such authorization within its sector.
MPIs are subject to stricter regulations regarding customer fund protection. The heightened oversight reflects the potential for greater risk associated with the scale of their activities.
Fueled by Bitcoin’s sustained strength and resurgent investor confidence, which have spurred a surge in trading activity, market makers like GSR are enjoying a period of resurgent profitability. GSR’s MPI follows its successful in-principle approval for the same license in October.
Singapore’s Reporting Obligations for MPI Licensees
The awarding of an MPI license is contingent upon applicants fulfilling specific financial criteria. This includes upholding a minimum base capital level of $185,000 and submitting regular financial statements to the Monetary Authority of Singapore (MAS).
Furthermore, MPI license holders are subject to ongoing reporting obligations to MAS. These encompass notifying the authority of any material alterations to their business operations, along with any suspicious activities identified through Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) controls.
Singapore’s Broader Vision for Crypto’s Future
Last year, Singapore solidified its position as a destination for crypto millionaires seeking tax-friendly havens to safeguard their crypto assets. The Crypto Adoption Index by Henley & Partners awarded Singapore a 10 on 10 score in the tax-friendliness parameter.
So far, the MAS has granted MPI licenses to a total of 19 firms. These include prominent players such as Blockchain.com, Circle, Coinbase, Paxos, and Upbit.
In furtherance of its ambitions to become a leading institutional hub for the digital asset industry, Singapore recently expanded the scope of its digital-asset regulations. These revisions encompass the custody of tokens and encompass a broader range of firms involved in fund transfers.
The post Crypto Market Maker GSR Wins Singapore’s Stringent License appeared first on Cryptonews.
