The Singapore subsidiary of crypto market maker GSR obtained the Major Payment Institution (MPI) license from the Monetary Authority of Singapore on April 1, the company told The Block on Thursday.
The Singapore entity, named GSR Markets, said it was the first of its kind to obtain the full MPI license from Singapore authorities, according to its press release. Currently, 19 companies engage in cryptocurrency services or digital payment token services have Singapore MPI license, including Paxos, Blockchain.com, Circle and Coinbase.
“We are proud to receive the MPI license from the MAS, a regulator that promotes sustainable, non-inflationary economic growth and a strong and progressive financial center,” Jakob Palmstierna, CEO of the GSR Group, said in the release.
The approval effectively allows GSR Markets to offer OTC and spot market making services in Singapore. In September last year, GSR Markets received the approval in principle for the MPI license, where the company said it was grateful to the MAS for its “constructive oversight”.
“It is important to note the institutionalization of a crypto market maker,” Kim Hyoung-joong, president of the Korea Fintech Society, told The Block, saying Asian regulators are not as fond of market makers of cryptography. “Pump n’ dump market making has so far prevailed. [in crypto]but when the regulations come into effect, the market will see more traditional market making methods emerge which will improve its perception.
Kim added that this regulatory approval in Singapore could become a positive precedent for regulatory developments in other Asian countries.
Singapore recently revised its rules for digital asset service providers in a bid to make the city-state the crypto hub of Asia. Hong Kong and Japan have also pushed or changed the rules in an effort to set a clear regulatory framework for crypto companies.
Earlier this week, the MAS announced that it expand its reach of regulated payment services to include custodial services for digital payment tokens (DPTs), facilitating the transmission of DPTs, and facilitating cross-border money transfers between countries “even when funds are not accepted or received in Singapore.
Updated to add comments from GSR.
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