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Suvashree Ghosh
Singapore will issue in-principle approvals to three more firms to provide digital payment token services in the city-state even as it maintains a stringent licensing regime for cryptocurrencies.
Crypto.com was among the companies that got the nod from the Monetary Authority of Singapore, according to a statement from the firm on Wednesday. The other two firms are GenesisSparrow Tech, according to a person with knowledge of the matter, confirming a Straits Times earlier.
The three new approvals take the number of crypto firms that have received the regulatory nod to 14, a fraction of almost 200 applicants. Singapore has been turning more cautious toward cryptocurrencies as policymakers seek to ring fence the nation from money laundering and cyber crime. Authorities have also repeatedly warned retail investors against putting their money in the market.
“We must continue to build trust through regulatory guardrails, while encouraging innovation and realising gains,” Heng Swee Keat, Singapore’s deputy prime minister, said in a video-message at a conference in Zurich Wednesday, where he announced the central bank will issue the three new permits.
Genesis and Sparrow Tech didn’t immediately comment in response to queries about the approvals.
Wary about the public getting burned from trading cryptocurrencies, the Monetary Authority of Singapore has been tightening regulations including clamping down on crypto marketing and requiring the virtual asset providers to be licensed locally even if they only do business overseas. The rules have made it more challenging for firms hoping to expand their business in the Southeast Asian nation where four out of 10 own a digital asset.
Some frustration with Singapore’s tentative approach appears to be brewing. Firms have moved to rival crypto-hub Dubai which is developing into a regional base. Bybit for example has announced switching their headquarters to Dubai from Singapore while Singapore-based CRYPTO.COM has set up a regional base in Dubai.
Heng reiterated the stance that the highly volatile prices in the crypto market make them unsuitable for the public. Still, he also stressed the benefits of the blockchain technology underlying cryptocurrencies that could improve the efficiency and cost of cross-border transactions.
“We are at an inflection point of a new wave of tech, even as we have yet to fully ride the existing wave,” he said.
— With assistance by Joanna Ossinger
