Crypto.com gets additional license in Singapore
Crypto.com has received a Major Payment Institution (MPI) license for Digital Payment Token (DPT) services from the Monetary Authority of Singapore (MAS) to operate fully regulated cryptocurrency services in the country.
Singapore continues to issue approvals to more cryptocurrency firms to provide digital asset services in the city-state even as it maintains a stringent licensing regime. Licensees are required to meet a high bar of compliance requirements to protect consumers.
The approval allows the firm to conduct a spectrum of virtual assets business under the Major Payment Institution (MPI) license. The announcement comes after Crypto.com received its in-principle approval in 2022, followed by a license for e-money issuance, account issuance, cross border and domestic money transfer services.
“The Monetary Authority of Singapore is recognized globally as a regulator that ensures responsible innovation of the digital assets sector. We are proud to receive the licence from a regulator that prioritizes consumer protection, safety, and security. We look forward to continuing to collaborate with MAS and leading at the forefront of crypto in our home market of Singapore,” said Kris Marszalek, CEO of Crypto.com.
“Singapore continues to be a hub for blockchain and fintech innovation. The Major Payment Institution licence underscores our ongoing commitment to build with the Web3 community in Singapore,” added Chin Tah Ang, General Manager, Singapore of Crypto.com.
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.
Crypto.com was in the news earlier this year when it announced plans to lay off 20% of its corporate workforce, or nearly 1000 people, in order to adapt to current market conditions. At the time, CEO Marszalek said several factors played into their decision to reduce headcount. Despite maintaining a strong balance sheet, he claims, Crypto.com had to navigate economic headwinds and unforeseeable industry events. He explains that they grew ambitiously at the start of 2022, aligning with the broader industry, but the trajectory has now changed with a confluence of negative developments.