The Monetary Authority of Singapore (MAS) has approved two companies in the country that deal in cryptocurrencies. Independent Reserve crypto exchange and DBS Vickers (DBSV) have received licenses issued on October 1.
The licenses will allow the two firms to offer digital payment token services as detailed in the Payment Services Act (PS Act).
Significant Move towards Crypto Recognition
The announcement issued by Independent Reserve stated that it would be the first cryptocurrency exchange from Australia to offer services to retail and institutional investors in Singapore.
Independent Reserve exchange was founded in 2013 in Australia. In 2019, the exchange started looking towards overseas operations, and that is how it entered into the Singapore crypto space by offering digital asset brokerage services to individuals and institutions.
On the other hand, DBS stated that with this new license, it would be better placed to support asset managers and institutions that want to trade cryptocurrencies using the DBS Digital Exchange (DDEx).
The DDEx crypto exchange was founded in December last year, and it only supports institutional investors. The exchange supports major cryptocurrencies such as Bitcoin and Ethereum.
The two firms were already operating in Singapore through a MAS in-principle approval that was issued in August.
Singapore’s Crypto Regulatory Framework
The CEO of Independent Reserve, Adrian Przelozny, spoke of the crypto regulatory framework in Singapore, noting that it was highly detailed. He also noted that Australian regulators could learn from Singapore’s approach to crypto trading. “Currently, there are no custodian requirements for digital asset exchanges in Australia,” he mentioned.
On the other hand, the DDEx Chair, Eng-Kwok Seat Moey, commented on the licensing, stating that it would place DBSV in a “better position to support institutional and corporate investors tapping into the growing potential of digital assets as an investment class.”
The licensing of these two exchanges comes a few days after Binance halted its offerings in Singapore after regulatory warnings. The MAS stated that Binance breached the PS Act. The MAS stated that Binance was an unregulated entity that investors wrongly perceived as being licensed to operate in the country. Binance later halted several product offerings to Singapore users.
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