Crypto exchange gets Singaporean approval on digital token services

Australian cryptocurrency exchange Independent Reserve has become the first cryptocurrency exchange in Singapore to receive an “in-principle approval” to operate as a fully regulated virtual asset service provider (VASP).

The Monetary Authority of Singapore (MAS) granted approval under the Payment Services Act (PSA) that provides exact rules and regulations for crypto exchanges and service providers that want to operate on a local level.

The PSA provides licensing and regulation to ensure compliance with anti-money laundering and counter financing of terrorism (AML/CFT) requirements and controls to mitigate technology risks.

Adrian Przelozny, chief executive officer of Independent Reserve, welcomed the move.

“To be one of the first cryptocurrency exchanges to be notified by MAS of our in-principle licensing approval is a reflection of the robustness of the policies, procedures and risk management systems that we have put in place to guide our day-to-day operations,” he said.

“It provides certainty for us as industry participants and security for our customers.”

More applicants

Singapore’s Senior Minister and Chairman of the Monetary Authority of Singapore, Tharman Shanmugaratnam there were more applicants in the final stages of review that wanted to get a license to enable their operations as digital payment token service providers.

According to his official statement, approximately 170 have applied to provide digital payment token services since the commencement of the Payment Services Act already in January 2020. 30 applications have been withdrawn after engagement with MAS while two had been rejected.

Shanmugaratnam confirmed that all applicants would be “subject to close scrutiny in the licensing process and ongoing supervision by MAS”.

However, some groups in Singapore – including Binance – have been given an exemption to provide services to their investors while they still wait for their formal license.