Sygnum Singapore Receives License to Run Crypto Brokerage
Sygnum Singapore, the Singapore branch of a Swiss bank, has obtained a Major Payment Institution License (MPIL) from the Monetary Authority of Singapore (MAS). This license allows Sygnum to operate as a crypto brokerage and offer its digital payment token brokerage service to large investors. The service includes a crypto-fiat gateway and facilitates trades for multiple cryptocurrencies. The approval from MAS demonstrates the regulator’s progressive approach to crypto regulation, according to Sygnum Singapore’s CEO Gerald Goh.
MAS Approval Can Boost Crypto Interest
The granting of the MPIL license by MAS is expected to increase interest in cryptocurrencies. Singapore has a history of attracting foreign investment, making it an attractive market for crypto. In 2022, the city attracted $195 billion in foreign inflows. Additionally, MAS has been accommodating towards digital asset payment businesses and has already approved applications from Coinbase, Circle, Ripple Labs, and Revolut.
Crypto Pulls Away From Macro
The approval of Sygnum’s license could introduce liquidity into crypto markets and attract institutional demand for regulated crypto investment vehicles. This could lead asset managers to buy and hold crypto on behalf of clients. The need for capital inflows is crucial as the correlation between crypto assets and equities appears to be decreasing. Investors may need to consider crypto-specific events like license approvals or halving events to guide their investment decisions.
Hot Take: License Approval Signals Progress in Crypto Regulation
The approval of Sygnum Singapore’s license by MAS is a significant development in the regulation of cryptocurrencies. It demonstrates MAS’ progressive approach and provides a clear framework for digital assets. This can empower investors to increase their exposure to digital assets with confidence. With Singapore’s favorable investment climate and support for digital asset businesses, the approval of Sygnum’s license is expected to drive further growth in the crypto industry.
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