Ripple announced today that it has received approval in principle for a major payment institution license from the Monetary Authority of Singapore (MAS), the country’s central bank and regulator. This news is an important step for Ripple, confirming its desire to strengthen its presence in Singapore’s dynamic financial landscape in Asia and consolidating its position as a major player in the field of international payments.
Ripple seizes opportunity to expand in Singapore
Ripple, the blockchain and digital payment company behind the XRPcontinues her quest for new horizons in Asia despite the legal torments she faces in the United States.
Recently, Ripple received in-principle approval from the Monetary Authority of Singapore (MAS) for obtaining a license to practice in the city-state. This move cannot be taken as a surprise, as Singapore has been steadily mounting successful cryptocurrency initiatives.
Ripple clarified that this license will allow its branch in Singapore to offer regulated digital payment token products and services, while strengthening the use of its cryptocurrency-powered On-Demand Liquidity (ODL) platform with its customers. This platform has seen five times the growth in the country compared to the previous year.
Ripple also pointed out that its office in Singapore has registered a 50% increase in its workforce year-on-year, reaching 50 full-time employees. This growth has necessitated hiring in key areas such as business development, compliance, finance, legal and sales, in an effort to strengthen its presence in the country.
According to Stuart Alderoty Ripple’s Chief Legal Officer, this expansion is largely due to Ripple’s ability to access the growing market for licensed digital assets that is booming in the country. This opportunity allows Ripple to position themselves strategically and capitalize on the advantages offered by the regulated digital asset market in Singapore.
“@MAS_sg has built a functional framework that truly brings together consumer protection, market integrity and innovation. They have also established a clear taxonomy to classify and regulate digital assets, which enables companies like Ripple to develop and offer compliant products.” said Stuart Alderoty on Twitter.
Singapore: The El Dorado of Crypto-Companies
Singapore attracts more and more companies of the cryptocurrency industry. Ripple is not alone in choosing this destination, as Circle and Coinbase have also recently obtained licenses to operate in the country. These companies seek to escape the hostile regulatory framework in the United States and turn to environments that are more favorable to their development.
The hype for the cryptocurrency industry in Asia is so strong that it even prompts the Hong Kong regulator to ask local banks to accept crypto. This reflects the need for financial institutions to adapt to the evolution of fintech blockchain-based.
The hostile regulatory framework in the United States has prompted many crypto companies to seek more fertile ground for their development. Singapore has become a preferred destination due to its progressive and open approach to cryptocurrencies. The Singapore government has put in place clear and supportive regulations that allow businesses in the sector to grow in a safe and regulated environment.
Sources: theblock, coindesk, twitter