Singapore Issues In-Principle License for Stablecoin Issuers
Singapore’s Monetary Authority issued an in-principle license to multiple stablecoin issuers, including Cryptocurrency brokerage Paxos, on November 16. This significant move aims to strengthen the stablecoin market in Singapore, positioning the country as a financial hub for this key crypto segment.
Singapore Aims to Compete in $127 Billion Crypto Market
The approval of in-principle licenses is part of Singapore’s vision to compete as an Asian financial hub in the $127 billion crypto market. The approval came alongside Paxos Digital Singapore Pte. Ltd.’s initial approval, allowing firms to introduce a USD-backed stablecoin according to MAS’ stablecoin regulatory framework.
Additionally, Japan and Hong Kong are also making efforts to position themselves as homes for stablecoin activity in Asia.
Asian Countries’ Efforts to Establish Financial Hub for Stablecoins
Japan’s Mitsubishi UFJ Financial Group Inc. is in talks about issuing popular global stablecoins, while Hong Kong is striving to develop a digital asset hub by 2023-2024. This growth contrasts with the slow development of crypto and stablecoins in the U.S., especially after FTX’s bankruptcy.
Hot Take: Asian Countries Embrace Stablecoin Growth
The rise of stablecoin activities in Asian countries such as Singapore, Japan, and Hong Kong contrasts with the slower developments seen in the U.S., highlighting Asia’s growing influence and efforts to position itself as a leading financial hub for crypto activities.
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