Ripple Obtains Major Payments Institution License in Singapore
Cryptocurrency company Ripple has announced that it has obtained a major payments institution license in Singapore, marking a significant step in expanding its presence in the Asia-Pacific region. This follows the initial in-principle approval granted by the Monetary Authority of Singapore just four months ago. With this full license, Ripple will be able to continue offering regulated crypto payment services in Singapore.
The company stated that over 90% of its business is conducted outside of the United States, with the Asia-Pacific region being one of its fastest-growing markets. Therefore, Ripple will prioritize the adoption of its crypto payment services in this region.
Ripple’s president, Monica Long, revealed that the company’s headcount in Singapore has more than doubled over the past year due to the explosive growth of their business within the Asia-Pacific region.
Singapore’s Leading Role in Crypto Regulation
Singapore has established itself as a leader in crypto regulation within the region. The Payment Services Act, which regulates payment services and the provision of crypto services to the public, has been effective since January 2020.
The country has also increased scrutiny on crypto firms by implementing measures such as requiring them to safekeep customer assets under a statutory trust by the end of 2023. Additionally, these firms are restricted from facilitating lending or staking their retail customers’ assets.
Positive Outlook for Ripple’s Presence in Singapore
Brad Garlinghouse, CEO of Ripple, expressed his positive outlook for the company’s presence in Singapore and praised MAS’ leadership. He emphasized that Singapore has become one of the leading fintech and digital asset hubs due to its ability to balance innovation, consumer protection, and responsible growth.
This stands in contrast to Ripple’s situation in the United States, where it is facing legal challenges from the Securities and Exchange Commission (SEC). Ripple and Coinbase have criticized the lack of clarity around crypto rules in the U.S. and have threatened to relocate their operations.
Hot Take: Ripple Expands its Presence in Asia-Pacific with Singapore License
Ripple’s acquisition of a major payments institution license in Singapore demonstrates its commitment to expanding its presence in the Asia-Pacific region. With over 90% of its business conducted outside of the U.S., Ripple sees this region as one of its fastest-growing markets. Singapore’s leading role in crypto regulation and its progressive jurisdiction make it an attractive location for Ripple to grow its operations.
However, Ripple’s positive outlook in Singapore contrasts with its ongoing legal battles in the U.S. with the SEC. The company, along with Coinbase, has criticized the lack of clarity around crypto regulations and threatened to leave the country. This highlights the importance of regulatory clarity for crypto companies to thrive and innovate.
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