Sygnum secures nod to offer crypto services in Singapore
Zurich-based fintech startup Sygnum has obtained approval from the Monetary Authority of Singapore (MAS) to begin offering regulated cryptocurrency services in the country.
In a statement, Sygnum confirmed that it has received in-principle approval for a major payment institution license (MPIL). This license will enable the Singtel-backed company to operate its regulated crypto brokerage service in Singapore without being subject to specified thresholds. The approval comes after Sygnum was granted a three-part capital markets license (CSML) extension in 2022.
With this regulatory approval, Sygnum will be able to provide its range of cryptocurrency services to customers in Singapore, ensuring compliance with the regulatory framework set by MAS. The company’s brokerage platform will include a fiat digital asset gateway and trade execution for a variety of cryptocurrencies. It also plans to offer competitive spreads, deep liquidity, and fast trade settlements.
Gerald Goh, Sygnum Co-Founder and CEO Singapore, says “This in-principle approval of our Major Payment Institution Licence by the MAS is a milestone in our strategic growth plans for Sygnum Singapore and South-East Asia. Like Switzerland, Singapore has a progressive, robust regulatory framework that provides investors the clarity and confidence to invest in digital assets – and Future Finance – with complete trust.”
The milestone makes Sygnum one of a handful of Singapore-based digital payment token service providers who have received such a coveted greenlight.
In addition to Sygnum, a few other entities hold major payment institution (MPI) licenses in Singapore. These include DBS Vickers, Digital Treasures Center, Fomo Pay, Independent Reserve, Metacomp, Paxos, Revolut, Sparrow Tech, and Hako. Furthermore, Gemini, a prominent cryptocurrency exchange, has expressed interest in expanding its operations to the city-state.
Sygnum was one of the first two Swiss crypto companies to be granted a banking license by the Swiss Financial Market Supervisory Authority (FINMA). This license enables the company to engage in various activities related to digital assets, including issuance, storage, trading, and management of cryptocurrencies. Additionally, Sygnum can offer a range of digital currency-related services under the regulatory framework provided by the banking license.
Expanding beyond Switzerland, Sygnum established its presence in Singapore and obtained a capital markets license. In 2019, the company formed its local subsidiary, Sygnum Singapore, to operate in the local market.
Singapore’s regulatory regime for exchanges requires them to provide adequate consumer protections and comply with Anti-Money Laundering measures.
