Circle gets approval to offer digital tokens in Singapore
Boston-based stablecoin issuer Circle has announced Wednesday that it has received its major payment institution (MPI) license for digital payment token (DPT) services from the Monetary Authority of Singapore (MAS).
This license enables Circle Singapore to provide various services in the city-state, including digital payment token services, cross-border money transfer services, and domestic money transfer services.
This announcement follows Circle, the issuer of the second-largest stablecoin by market capitalization, receiving its in-principle approval from MAS in November 2022. With this license in place, the company can continue to extend its digital payment token (DPT) services to customers in Singapore.
Circle is the latest entrant on the growing list of companies approved by MAS to offer digital payment token services. Other notable licensed players include crypto exchanges Crypto.com and Coinhako and fiat-to-crypto payments firm DTC.
According to a notice in the government’s official gazette, the new license comes after a stringent examination and approval process conducted by MAS. Using the specific terms of the Singaporean framework, the firm has now been approved as a Major Payment Institution Licence that allows it to provide Digital Payment Token Services.
“Singapore is integral to Circle’s global expansion and mission in raising global economic prosperity and through the frictionless exchange of value. We are honored to receive the MPI license from MAS, and we remain committed to being a part of Singapore’s dynamic economy by advancing the future of financial technology innovations in the city-state, uplifting its emerging technology and fintech sector, and creating business and career opportunities for its technology and financial industry talent,” said Jeremy Allaire, Co-Founder and CEO of Circle.
“This is a significant step forward for Circle and the future of financial infrastructure and dollar digital currencies in the region. The receipt of the MPI license represents our continued commitment to work with forward-thinking leaders and stakeholders at a global level and contribution to Singapore’s position as a hub for responsible financial services innovation,” added Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Policy.
Singapore’s regulatory regime for exchanges requires them to provide adequate consumer protections and comply with Anti-Money Laundering measures.
Regulators in Singapore said they may implement consumer protections for crypto investors, which could include suitability tests, curbs on leverage trading and credit facilities. They have also repeatedly warned retail investors against putting their money in the market. Nevertheless, MAS has updated its regulatory framework for crypto-related activities, including digital payments. The country’s Payment Services Act (PSA) covers all crypto businesses and exchanges based in Singapore, bringing all crypto activities under anti-money laundering and counterterrorist-financing rules.