Bitstamp Receives In-Principle Approval for Digital Asset Services License in Singapore
European cryptocurrency exchange Bitstamp has been granted in-principle approval by the Monetary Authority of Singapore (MAS) for its license application to offer digital asset services in Singapore. This approval allows Bitstamp to establish its presence in key markets in the Asia-Pacific region and globally.
Bitstamp Obtains Major Payment Institution License
Bitstamp, which previously operated under an exemption from the Payment Services Act, has now obtained preliminary approval for a major payment institution license. This license will enable the exchange to provide cross-border money transfer and digital payment token exchange services to customers in Singapore and selected countries across the region.
Positive Regulatory Landscape in Singapore
Leonard Hoh, Bitstamp’s Asia-Pacific General Manager, highlighted the positive regulatory and commercial landscape in Singapore that supports the institutionalization and broader adoption of digital assets. Hoh mentioned that partnering with institutions seeking counterparties licensed in highly regarded jurisdictions like Singapore is advantageous for Bitstamp.
Crypto Market Rebound
The in-principle approval for Bitstamp comes at a time when the crypto market is experiencing a rebound. With the European Union expected to solidify its regulatory framework for cryptocurrencies in 2024 and the United States Securities and Exchange Commission (SEC) approving Bitcoin exchange-traded funds (ETFs), the market is poised for further growth and mainstream adoption.
Bitstamp’s Role as a Critical Infrastructure Provider
Bitstamp has been a critical infrastructure provider for Bitcoin markets and other large-cap cryptocurrencies since 2011. The exchange is among the six platforms that provide market data for the CME CF Bitcoin reference rate, which is used by spot Bitcoin ETFs in the United States and other market participants. Additionally, Bitstamp played a role in the listing of Societe Generale-Forge’s stablecoin, EUR CoinVertible (EURCV), on its platform in December 2023.
Bitstamp’s Expansion and Licenses
Bitstamp’s expansion has been supported by various licenses and registrations obtained over the years. Since securing its first license in Luxembourg in 2016, the exchange has acquired over 50 licenses and registrations in global markets, including the United Kingdom, the Netherlands, and New York.
Finance-Savvy Singaporeans Embrace Crypto
A recent report by Seedly and Coinbase reveals that more than half of finance-savvy Singaporeans have embraced cryptocurrency and consider it the future of finance. The report, conducted in the fourth quarter of 2023 and encompassing over 2,000 adults, found that 57% of respondents currently hold digital assets. The majority of respondents said they have invested between US$1,000 and $25,000.
Singapore’s Engagement with Digital Currencies
Singapore has been actively engaging with global financial authorities in the realm of digital currencies. In September 2023, the Monetary Authority of Singapore (MAS) completed a joint test of cross-border trading and settlement of wholesale central bank digital currencies in collaboration with the Bank for International Settlements and the central banks of France and Switzerland. In July, Singapore also revealed plans to impose a trust requirement on cryptocurrency exchanges to instill confidence in the market and protect investors from potential losses.
🔥 Hot Take: Bitstamp Expands into Singapore’s Growing Crypto Market 🔥
Bitstamp’s in-principle approval for a digital asset services license in Singapore is a significant milestone for both the exchange and the growing crypto market in Singapore. With the approval, Bitstamp can now provide its services to users in Singapore and selected countries across the region, facilitating cross-border money transfer and digital payment token exchange.
The positive regulatory and commercial landscape in Singapore, along with the increasing adoption of cryptocurrencies by finance-savvy Singaporeans, makes it an attractive market for Bitstamp’s expansion. This move will further solidify Bitstamp’s position as a trusted and reliable exchange.
As the crypto market rebounds and regulatory frameworks for cryptocurrencies continue to develop globally, Bitstamp’s presence in Singapore positions it for further growth and opportunities in the Asia-Pacific region. The approval from MAS reflects the recognition of Bitstamp’s compliance with regulatory standards, which will enhance investor confidence and contribute to the mainstream adoption of digital assets.
Overall, Bitstamp’s entry into the Singapore market is a positive development for both the exchange and cryptocurrency enthusiasts in the region. It opens up new avenues for individuals and institutions to engage with digital assets securely and efficiently.
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