GSR Markets Secures Full Major Payment Institution License From Singapore's Monetary Authority
Summary:
GSR Markets, a crypto trading and liquidity provisioning firm, has received a full Major Payment Institution (MPI) license from Singapore's Monetary Authority (MAS). With this license, GSR can conduct multiple payment services and exceed volume limits for payment firms in Singapore, furthering its over-the-counter spot transactions and market-making services. The company joins other crypto firms like Crypto.com, Coinbase, and Ripple, who have already secured their MPI licenses in 2023, as Singapore continues to support crypto innovations while maintaining regulations to discourage retail speculation.
Singapore's Monetary Authority (MAS) has granted a full Major Payment Institution (MPI) license to GSR Markets, a company specialized in cryptocurrency trading and providing liquidity. GSR was given the license approval on April 4, following a provisional acceptance in October 2023. GSR's CEO in Singapore, Xin Song, expressed that GSR is the pioneer of its type to be awarded the MPI license within the nation.
An MPI license allows companies in Singapore to perform multiple payment services and go beyond the transaction restrictions for payment firms. Such licensed corporations can surpass the transaction cap of 3 million Singapore dollars, equivalent to $2.2 million, for a single payment service and the monthly limit of 6 million SG$ ($4.4 million) for two or more payment services. For GSR, this MPI license will authorize the company to carry out its over-the-counter spot transactions and market-making services under the supervision of Singapore's central bank.
GSR, established in 2013 in the US, engages in over-the-counter crypto trading, derivatives, market-making, and venture capital investments. The firm also carries Money Service Business licenses in various US states. Accommodative regulations in Singapore encourage financial firms to explore blockchain technology, setting the country as a digital asset center. Consequently, many crypto-based businesses are eager to gain their MPI licenses to render their services in the country.
In 2023, Crypto.com, Coinbase, and Ripple were officially granted their MPI licenses in Singapore. In June, Crypto.com received its license, while Ripple and Coinbase got their official approval in October. Crypto custodian BitGo and crypto exchange OKX were given MPI licenses on a provisional basis in 2024.
Even though Singapore is a supporter of crypto-based innovations, it continues to enforce its laws, minimizing retail speculation. Upon receiving feedback regarding proposed Digital Payment Token (DPT) regulations, MAS set up guidelines to dissuade retail investors from speculating on crypto investments. On November 24, MAS shared five methods for DPT service providers to discourage retail clients from partaking in price speculation.
Recently, Singapore's central bank expanded the scope of its Payment Services Act. As of April 2, MAS announced that multiple activities have been included under the Act. These activities encompass custody services for DPTs, facilitating token transfers and exchange, and conducting cross-border fund transfers.
Published At
4/4/2024 2:39:02 PM
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