100 Firms Fail to Get hold of Crypto Licenses in Singapore Due to Tricky Law

100 Firms Fail to Get hold of Crypto Licenses in Singapore Due to Tricky Law

More than 100 companies that requested a license to offer crypto solutions in Singapore have either been denied or withdrawn their applications. “Cryptocurrencies could be abused for money laundering, terrorism funding, or proliferation financing due to the speed and cross-border nature of the deals,” claimed the country’s central bank, the Monetary Authority of Singapore (MAS).

Challenging Crypto Regulation in Singapore

Considering that Singapore started regulating the crypto industry, concerning 170 companies have obtained a license to use “electronic payment token services,” that include crypto-related services.

However, more than 100 companies that obtained a license have either been rejected or withdrawn their applications, Nikkei Asia reported Monday.

Companies that were running in the country prior to the introduction of the licensing routine were granted exemptions up until their certificate applications have been processed. Senior Citizen Preacher Tharman Shanmugaratnam informed parliament in July that 90 companies were running under such exceptions.

A speaker for the Monetary Authority of Singapore (MAS), the nation’s reserve bank as well as regulatory authority of the crypto industry, informed the information outlet: “Cryptocurrencies could be abused for cash laundering, terrorism funding, or spreading financing due to the rate as well as cross-border nature of the deals.” The speaker specified:

Digital payment token company in Singapore … need to adhere to requirements to reduce such dangers, including the requirement to accomplish proper client due persistance, conduct routine account evaluations, as well as screen and record dubious deals.

Up until now, only three firms are noted as qualified entities on the MAS site: DBS Vickers Stocks, a device of DBS Group Holdings, Southeast Asia’s largest bank; digital settlements start-up FOMO Pay; and Australia’s Independent Reserve. The MAS claimed in November that Singapore strives to come to be a global crypto center.

DBS’s head of capital markets as well as the chairperson of the bank’s crypto exchange stated in September: “We are expanding very rapidly. Financiers are slowly discovering cryptocurrencies and also digital properties.”

In September, the reserve bank got Binance to stop giving crypto services to citizens. Recently, Binance revealed that its Singapore platform will be shutting down.

Binance CEO Changpeng Zhao (CZ) claimed that the reason behind the closure of its Singaporean exchange was because of an 18% stake in Hg Exchange (HGX), a regulated protections exchange in Singapore. Nevertheless, Bloomberg reported that the actual reason was because Binance can not meet the requirements for a permit to operate a crypto exchange.

Back To Top