The Monetary Authority of Singapore (MAS) has given preliminary permission for a major payment institution license under the Payment Services Act, which governs activities in the cryptocurrency industry, according to the South Korean cryptocurrency exchange Upbit Singapore entity’s announcement on Monday.
With the permission, the exchange is able to continue providing regulated digital payment token (DPT) services to experienced investors. Due to the surge of institutional investors looking for stability amid erratic global politics, Singapore is fast becoming as a hub for global business.
The expansion of the assets managed in Singapore has been considerably aided by these non-retail clients, which also include family offices, private trusts, and affluent people.
The exchange also stated that it serves regular investors, but the Monetary Authority of Singapore (MAS) advised against cryptocurrency trading for this group due to its high level of risk and unpredictability.
According to its founder and CEO, Alex Kim, Upbit Singapore was founded in 2018 and gained authorisation from the Monetary Authority of Singapore (MAS) to offer direct banking services in 2020.
The exchange’s South Korean branch primarily services retail investors on an individual basis, while the Singapore branch acts as the center of Upbit’s international operations in the Asia-Pacific area. In the same region, Upbit also conducts business in Indonesia and Thailand.
In this region, Upbit employs about 80 people, 20 of whom are based in Singapore. Mr. Kim stated that the exchange will become more well-known, broaden its selection of digital assets, boost liquidity, and provide services geared toward institutional clients after it has received a complete license.
To date, more than a dozen businesses have been granted complete licenses to offer services utilizing digital payment tokens (DPT). Notable names among them include Coinbase, Ripple, and Sygnum Singapore.
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