Upbit gains preliminary approval from Singapore’s Monetary Authority, strengthening its regional presence; Singapore’s crypto-friendly regulation draws major exchanges and blockchain businesses.
Key Takeaways
- Upbit gains preliminary approval from the Monetary Authority of Singapore, enhancing its regional foothold.
- While awaiting full licensing, Upbit Singapore will continue offering regulated digital asset services.
- In July, Upbit’s trading volume eclipsed that of Coinbase, signaling significant market traction.
- Singapore’s proactive, crypto-friendly regulatory environment attracts major exchanges and blockchain businesses.
In a significant move, Upbit, a prominent cryptocurrency exchange, has garnered in-principle approval from Singapore’s Monetary Authority (MAS).
This conditional green light permits Upbit Singapore to persist in its provision of regulated Digital Payment Token services, aligning with the stipulations of the Payment Services Act 2019, even as it anticipates its full license sanction.
Upbit, South Korea’s largest exchange, announced that Upbit Singapore has received in-principle approval for a Major Payments Institution (MPI) license in Singapore. In October, the Singapore entities of Coinbase, Ripple, GSR and Sygnum Bank all received MAS licensing approval,…
— Wu Blockchain (@WuBlockchain) October 16, 2023
Upbit in Singapore
This development is hot on the heels of Upbit’s recent trading triumphs. Data revealed that in July, Upbit’s trading volume soared to a staggering $29.8 billion, outstripping renowned crypto exchange Coinbase, which posted a trading volume of $28.6 billion.
These figures underscore Upbit’s rapidly growing influence within the cryptocurrency market landscape.
The nod from MAS doesn’t just bolster Upbit’s regulatory repertoire but also cements its ambition to expand within the Asian Pacific’s bustling crypto market.
“Upon the MPI license acquisition, Upbit Singapore will assimilate into the cadre of regulated digital asset exchanges functioning under Upbit APAC,” affirmed a recent communique.
The timeline for transmuting this provisional approval into a full-fledged license remains nebulous. Notably, Crypto.com, another significant player, clinched full-scale approval almost a year after its initial conditional endorsement.
Simultaneously, Singapore is carving a niche as a burgeoning hub for crypto enterprises, evidenced by Coinbase’s recent procurement of an MPI from MAS.
The city-state’s amenable regulatory climate is not just drawing crypto exchanges but also blockchain innovators, as evidenced when Ripple secured the MAS’s approval-in-principle despite its ongoing legal tussle with the US Securities and Exchange Commission.
Concluding Thoughts
Singapore’s warm reception towards cryptocurrency businesses, exemplified by its progressive regulatory steps, signifies a broader shift in the global financial paradigm.
As traditional finance and crypto converge, regulatory approvals like that obtained by Upbit aren’t just procedural formalities. They are affirmations of the burgeoning legitimacy and institutional acceptance of digital assets.
These advancements underscore the importance of robust regulatory frameworks that don’t stifle innovation. Instead, by providing clear guidelines and proactive support, authorities like MAS are nurturing a conducive environment where crypto businesses can thrive responsibly.
This balancing act between regulation and innovation is crucial as the digital asset space continues to evolve at a breakneck pace.
The situation warrants attention from both industry participants and regulators worldwide. Singapore’s model illustrates that embracing digital finance under comprehensive regulatory oversight can spur growth, attract investment, and catalyze innovation, setting a precedent others might soon follow.
