Ripple, a leading cryptocurrency company, announced a significant milestone as it obtained a major payments institution license in Singapore. This strategic move aims to strengthen Ripple’s presence in the Asia-Pacific region and demonstrates its commitment to expanding its regulated crypto payment services.
Rapid Progress in Singapore
Just four months after receiving initial in-principle approval from the Monetary Authority of Singapore (MAS) in June, Ripple has now secured a full license to provide regulated crypto payment services in Singapore. This achievement highlights the company’s dedication to operating within the regulatory framework and delivering secure and compliant solutions.
Singapore, being one of the fastest-growing regions for Ripple, holds immense potential for the adoption of its crypto payment services. With over 90% of Ripple’s business conducted outside the United States, the company recognizes the importance of the Asia-Pacific market and continues to prioritize the region for further expansion.
Ripple’s Growing Presence in Asia-Pacific
Monica Long, President of Ripple, emphasized the remarkable growth of Ripple’s Asia-Pacific operations, stating that the headcount in the Singapore office has more than doubled in the past year. Ripple’s commitment to hiring exceptional talent and local leadership demonstrates its dedication to nurturing and expanding its presence in the region.
Singapore’s Leading Role in Crypto Regulation
Singapore has established itself as a leader in crypto regulation within the Asia-Pacific region. The Payment Services Act, which has been in effect since January 2020, plays a crucial role in regulating payment services and the provision of crypto services to the public. By implementing a robust regulatory framework, Singapore ensures consumer protection while fostering innovation and responsible growth in the fintech and digital asset space.
In line with its focus on consumer protection, Singapore’s regulatory authority has ordered crypto service providers to safeguard customer assets under a statutory trust by the end of 2023. Additionally, these firms are restricted from facilitating lending or staking activities involving retail customers’ assets. Such measures aim to enhance the security and integrity of the crypto ecosystem in Singapore.
Ripple’s Appreciation for Singapore’s Progressive Environment
Brad Garlinghouse, CEO of Ripple, expressed his gratitude for Singapore’s role as Ripple’s Asia-Pacific headquarters and its contribution to the company’s global business. He commended the Monetary Authority of Singapore’s leadership in fostering an environment that strikes a balance between innovation, consumer protection, and responsible growth. Ripple plans to continue expanding its presence in Singapore, leveraging the country’s progressive jurisdiction and its reputation as a prominent fintech and digital asset hub.
Contrasting Situations: U.S. vs. Singapore
While Ripple’s progress in Singapore is commendable, it stands in stark contrast to the company’s situation in the United States. Ripple and Coinbase, another prominent cryptocurrency firm, have been embroiled in lawsuits with the U.S. Securities and Exchange Commission (SEC). In 2020, the SEC charged Ripple and its founders, alleging the illegal sale of its native cryptocurrency XRP without proper registration. However, in a landmark ruling in July, it was determined that XRP itself may not necessarily be classified as a security.
The lack of regulatory clarity and the SEC’s crackdown on the crypto industry have led Ripple, Coinbase, and other firms to criticize the U.S. regulatory environment. In response to these challenges, Ripple and Coinbase have sought opportunities in Singapore, which offers a more supportive and transparent regulatory landscape.
Coinbase Joins Ripple in Singapore
Coinbase, a leading cryptocurrency exchange, also made a significant move by obtaining a major payment institution license in Singapore. After receiving in-principle approval approximately a year ago, Coinbase has now solidified its position as a licensed provider of crypto services in Singapore. This development further strengthens Singapore’s position as a hub for reputable and licensed crypto service providers.
Conclusion
Ripple’s acquisition of a major payments institution license in Singapore marks a significant step forward for the company’s growth in the Asia-Pacific region. By obtaining a full license and operating within Singapore’s regulatory framework, Ripple showcases its commitment to compliance and security. The company’s expanding presence in the region, coupled with Singapore’s progressive approach to crypto regulation, positions both Ripple and Singapore as key players in the global crypto ecosystem.
Notice
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