Sygnum Singapore Receives Approval for Major Payment Institution License
Sygnum Singapore, a subsidiary of Swiss cryptocurrency bank Sygnum, has obtained approval for its Major Payment Institution License (MPIL) from the Monetary Authority of Singapore (MAS). This license allows Sygnum to offer crypto brokerage services to accredited investors and institutions in Singapore.
The licensing process was completed on October 3, enabling Sygnum Singapore to provide regulated Digital Payment Token (DPT) brokerage services in the country. The company had previously received in-principle approval for the MPIL in June and successfully transitioned to a full license within four months.
The MPIL empowers Sygnum Singapore to conduct payment services without transaction limits, which were previously set at SGD 3 million ($2.2 million) and monthly limits of SGD 6 million ($4.4 million).
Sygnum Gains Momentum and Sets Sights on APAC Expansion
Founded in 2018, Sygnum has accumulated over CHF 3.2 billion in Assets Under Management (AuM) and serves more than 1,600 individuals and institutions from over 60 countries. In addition to its operations in Singapore, the company offers regulated services in Luxembourg and Abu Dhabi.
With the newly acquired MPI license, Sygnum plans to expand further into the Asia-Pacific (APAC) markets, particularly Hong Kong.
Gerald Goh, Sygnum Co-Founder and CEO of Singapore, expressed confidence in the MAS’s regulatory framework and believes it will encourage investors to increase their exposure to digital assets with trust.
MAS Actively Grants MPI Licenses
The Monetary Authority of Singapore has been actively granting Major Payment Institution (MPI) licenses to various Digital Payment Token companies, including Coinbase, GSR Markets, Blockchain.com, Circle, Paxos, and Ripple.
GSR Markets and Coinbase recently received in-principle approval for their MPI licenses. MAS places significant emphasis on robust anti-money laundering controls when granting these licenses.
In 2020, approximately 180 companies applied for the cryptocurrency payments license in Singapore. In August 2022, MAS announced plans to implement regulations to make it more difficult for retail investors to engage in cryptocurrency trading due to associated risks.
Hot Take: Sygnum Singapore Expands Crypto Services with MPI License Approval
Sygnum Singapore’s approval for the Major Payment Institution License from MAS marks a significant milestone in the company’s growth. With this license, Sygnum can offer fully regulated crypto brokerage services without transaction limits to accredited investors and institutions in Singapore.
As a subsidiary of Sygnum, a leading Swiss cryptocurrency bank, Sygnum Singapore has rapidly expanded its client base and assets under management. The company now aims to capitalize on its success by expanding into the Asia-Pacific markets, starting with Hong Kong.
The proactive approach of MAS in granting MPI licenses demonstrates Singapore’s commitment to fostering a robust regulatory framework for digital payment services. This move is likely to attract more reputable crypto companies to establish operations in the country while ensuring investor protection.
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