Bitstamp Receives In-Principle Approval License in Singapore
Bitstamp, the world’s oldest cryptocurrency exchange, has achieved an In-Principle Approval (IPA) license from the Monetary Authority of Singapore (MAS). This approval is a crucial step for Bitstamp to obtain the Major Payment Institution (MPI) license in Singapore.
The IPA license allows Bitstamp to operate in compliance with Singapore’s Payment Service Act and navigate its strict regulatory landscape. The exchange’s primary focus will be serving institutions within Singapore, including payment processors, fintech companies, and brokerages. Bitstamp also plans to offer services to retail customers in the Asia-Pacific region.
Bitstamp is committed to compliance and regulation and has obtained more than 50 licenses and regulations worldwide since 2016. The exchange sees this approval as an exciting development for the market, especially with the upcoming implementation of the European Union’s MiCA regulatory framework and the potential approval of Bitcoin ETFs by the US Securities and Exchange Commission (SEC).
MAS’s Strict Approach to Crypto Trading
Singapore has a strict regulatory landscape for cryptocurrencies, aimed at protecting retail investors from potential risks associated with crypto trading. In November 2023, MAS implemented measures to safeguard investors further.
These measures include restrictions on lending and staking in Singapore. DTP service providers are prohibited from offering retail trading, financing, margin, or leverage transaction incentives. They are also not allowed to accept locally issued credit card payments. MAS advises residents to avoid engaging with unregulated entities, both local and overseas.
The strict regulations in Singapore have also influenced the country’s regulator’s caution regarding spot Bitcoin ETFs. The MAS considers cryptocurrencies as highly volatile assets and has classified Bitcoin and other DPTs (Digital Payment Tokens) as collective investment schemes, which do not meet its approval criteria.
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