Paxos, a blockchain infrastructure platform, said today that it has acquired preliminary approval from Singapore’s Monetary Authority.
The US-based crypto firm’s permission comes only days after Swiss crypto bank Sygnum got regulatory approval to extend its crypto offerings in Singapore.
Paxos stated in its press release that it will now provide digital payment token services in Singapore under the Payment Services Act 2019. Previously, the stablecoin issuer could only be regulated in New York under the first limited purpose Trust charter for digital assets.
According to the platform, the license would also assist Paxos in assisting its current partners in growing their services beyond Asia.
“We created Paxos in Singapore in 2012 because of this jurisdiction’s forward-thinking approach to innovation and oversight,” said Rich Teo, Co-Founder and CEO of Paxos Asia.
Since last year, the city-state of Singapore has emerged as a critical node, issuing multiple crypto licenses to both domestic and international firms. Other names that have been approved as Digital Payment Token (DPT) service providers by the MAS include bitcoin exchange Independent Reserve, venture firm DBS Vickers, and fintech firm FOMO Pay.
Furthermore, Paxos’ accreditation comes at a time when cryptocurrency behemoths are increasing their offers in the Asian market. It hasn’t, however, been an easy route for everyone.
The MAS provided a list of 70 platforms last year, including significant names such as Binance Asia, Upbit Singapore, OKCOIN, Ripple Labs Singapore, Gemini Trust Company, Bitstamp, and Coinbase Singapore. For a set length of time, these DPT providers were allowed an exemption under the Payment Services Act. Paxos was also one of the exempted players on the list prior to the approval.
Huobi Global and Binance, on the other hand, had to cease digital asset trading in Singapore in order to comply with domestic regulations. Despite the rare stumbling obstacles encountered by some of the players, Paxos is now looking forward to developing in the nation-state.
“We’re pleased to have MAS as our regulator, and with their oversight, we’ll be able to safely advance consumer adoption of digital assets around the world by powering regulated solutions for the world’s largest organizations,” Teo added.