Leading stablecoin issuer Paxos received approval from the Monetary Authority of Singapore (MAS) to issue stablecoins, on 1 July 2024.
Singapore’s central bank authorized the New York-headquartered company to offer specific services that will enable it to issue stablecoins in compliance with the country’s stablecoin framework. This approval will allow the company’s Singapore entity, Paxos Digital Singapore Pte Ltd, to operate as a major payments institution and provide digital payment token services.
In a press release, Walter Hessert, Head of Strategy at Paxos said, “Stablecoins issued in accordance with standards set by a regulator like MAS – known for its rigorous regulatory standards – represent a significant step towards democratizing access to commerce and financial services.”
“Receiving approval from MAS is an important step for Paxos and our global enterprise partners to safely offer access to US dollars to more users around the world,” Hessert added.
Paxos Adds Singapore To List Of Approved Jurisdictions
Having been authorized to issue stablecoins in the US and the UAE, Paxos has now added Singapore to its list of approved jurisdictions.
So far, the MAS has granted the Major Payment Institution (MPI) license to 19 firms engaged in cryptocurrency services or digital payment token services, including Paxos, Blockchain.com, Circle, and Coinbase.
Breaking: Next domino falls from the June 30th MiCA windfall in Stable Coin regulation as @Paxos secures approval to issue in Singapore.
This waterfall of regulations will inject trillions into the crypto rails. https://t.co/gaX3fnfYUk@Paxos #Paxos $USDC #eurc
— MartyParty (@martypartymusic) July 1, 2024
To obtain the MPI license, companies are required to meet specific criteria. For example, maintaining a base capital of SGD 250,000 and having a registered office or permanent place of business in Singapore.
In addition to the regulatory approval, Paxos announced its partnership with DBS Bank, one of Singapore’s leading financial institutions, to address cash management needs and custody stablecoin reserves.
“This partnership further expands DBS’ wide-ranging involvement across the digital asset ecosystem, of which we have been a pioneer and innovator for several years now,” said Evy Theunis, Head of Digital Assets at DBS Bank’s institutional banking group.
DBS Bank has been actively engaged in the cryptocurrency industry, having launched a fiat-to-crypto exchange in 2020. The bank continues to forge partnerships with various entities to explore opportunities in the emerging metaverse and gaming sectors.
MiCA’s Stablecoin Regime Comes In Effect
The European Union’s Markets in Crypto-Assets (MiCA) regulatory framework related to stablecoins took effect last month. Under the new rules, companies must stop issuing non-euro-denominated stablecoins used as a “means of exchange” if they cross a threshold of more than 1 million transactions or a value of over 200 million euros (US$215.2 million) per day.
Explore: What are Stablecoins? (Tether, BUSD, DAI, USDC)
Furthermore, stablecoin issuer Circle recently said that it’s now registered as an electronic money institution, or EMI, in France. This grants the firm a key license to become a compliant stablecoin issuer under the EU’s new crypto laws.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
