By
Bena Ilyas
April 8th, 2024
An in-principle approval is a preliminary nod that the MAS issues to firms applying for the major payment institution (MPI) license.
Bitstamp has received in-principle approval from the Monetary Authority of Singapore (MAS) to operate as a major payment institution. This marks the entry of the popular European-based cryptocurrency exchange into the thriving Asian market. The approval means that Bitstamp is a step closer to offering a wide range of crypto services, including trading, custody, and exchange services to Singaporean customers, promising greater accessibility and opportunities for crypto traders and investors in the region.
Usually, an in-principle approval is a preliminary nod that the MAS issues to firms applying for the major payment institution (MPI) license.
Recall that South Korean Upbit bagged a full MPI license in Singapore in January. That license, however, came around three and a half months after Coinspeaker initially reported that it received the preliminary nod from the MAS.
Although the recent approval is still a step away from what Bitstamp aims, the exchange has expressed its delight about the development. Describing its achievement in an e-mailed announcement, Bitstamp says it is the “first crypto exchange with major European Union (EU) presence to secure in-principle approval in Singapore”.
The Implication of Bitstamp’s Expansion to Singapore
Bitstamp’s expansion into Singapore is a testament to the progressive approach of the country to financial innovation and regulation. This approach has undoubtedly positioned Singapore as a hub for cryptocurrency and blockchain technology. Hence the exchange’s strategic move to apply for the MPI license in the region. Bitstamp’s Asia-Pacific general manager, Mr. Leonard Hoh shared this reason in a statement that reads:
“We see Singapore’s positive regulatory and commercial landscape helping to spearhead the institutionalisation and broader adoption of digital assets.”
On a broader scale, the expansion to Singapore also underscores the growing importance of the Asian market in the global cryptocurrency landscape.
Notably, the MAS has been actively fostering innovation in the fintech and cryptocurrency sectors. It has created initiatives such as the Payment Services Act (PSA) and also established a regulatory sandbox for digital payment token services.
With the MAS’s recent in-principle approval, Bitstamp is poised to become a key player in the Singaporean cryptocurrency market. Within a short timeframe, the exchange is expected to begin offering secure and reliable services to both institutional and retail investors. Not only in the Asian region but the world at large.