On Wednesday, European crypto exchange Bitstamp announced it had received an In-Principle Approval (IPA) license in Singapore. This license comes as the exchange’s first crucial step for navigating the strict regulatory landscape of the country.
Bitstamp Secures IPA in Singapore
Bitstamp, the world’s longest-running crypto exchange, has secured approval for an In-Principle license from the Monetary Authority of Singapore (MAS). This step is crucial in obtaining the Major Payment Institution (MPI) license from the Southeast Asian country.
Big news! 📰 Bitstamp is the first crypto exchange with major EU presence with In-Principle License Approval in Singapore. 🇸🇬
We’re paving the way for globally regulated crypto exchanges in Singapore and the APAC region.
More info: https://t.co/WdefHJiZXU pic.twitter.com/4D1NuU9PJW
— Bitstamp (@Bitstamp) March 6, 2024
The IPA license is part of the exchange’s global strategy to operate in the country in compliance with its Payment Service Act. According to the announcement, the exchange’s primary focus will be serving institutions within Singapore. This strategy will include intermediaries, like payment processors, fintech companies, and brokerages.
The exchange revealed it’s “confident about its proposition,” which includes providing services to retail customers in the Asia-Pacific region. However, Singapore remains at the core of the exchange’s ‘strategic’ project to expand its regulatory licenses within the area.
Bitstamp emphasized its “commitment to compliance and supporting the growth of the evolving global landscape” after becoming the “first crypto exchange with major EU presence” to achieve the IPA license.
Reiterating its focus on “compliance and regulation at the heart of all operations,” the exchange highlights the more than 50 licenses and regulations it has obtained worldwide since 2016.
Additionally, it considers that the approval comes at “an exciting time for the market” due to the upcoming implementation of the European Union’s MiCA regulatory framework and the Bitcoin ETFs approval in the United States by the country’s Securities and Exchange Commission (SEC).
MAS Strict View Of Crypto Trading
This license approval falls within Singapore’s strict regulatory landscape. In November 2023, the Asian country expanded its regulatory measures to “continue its efforts to safeguard” retail investors from the “potential risks related to crypto trading.”
Previous measures included restricting lending and staking in the country. The rules MAS incorporated in November prohibit DTP service providers from offering retail trading, financing, margin, or leverage transaction incentives.
These guidelines also prevent DTP providers from accepting locally issued credit card payments. The MAS has advised Singapore residents to avoid engaging with “unregulated entities,” including overseas ones.
Similarly, the country’s strict regulations led to the caution of the country’s regulator regarding spot Bitcoin ETFs after the approval of these investment products in the US. The MAS reiterated its stance on cryptocurrencies as ‘highly volatile’ assets.
At the time, the regulatory agency emphasized that these investment products fell under the category of collective investment schemes and, as such, were not approved assets as Bitcoin and other DPTs didn’t meet MAS’s criteria.
Bitcoin is trading at $66,176.1 in the daily chart. Source: BTCUSDT on TradingView.com
Featured image from Unsplash.com, Chart from TradingView.com
