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Singapore’s endorsement of digital innovation has taken another significant leap, with South Korean cryptocurrency exchange Upbit securing a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS).
This breakthrough allows Upbit to extend regulated digital payment token (DPT) services. It further reinforces Singapore’s status as a global hub in the cryptocurrency sector.
Upbit Secures Coveted MPI License in Singapore
Upbit’s journey to this commendable milestone began with an in-principle approval from MAS in October 2023. This strategic move enabled Upbit to maintain its operations while pursuing full licensing. Now, with the MPI license in hand, Upbit joins the ranks of elite crypto platforms like Coinbase and Crypto.com, who have previously navigated Singapore’s rigorous regulatory waters to obtain similar licenses.
The significance of this achievement was aptly captured in Upbit’s blog post, stating,
“This significant milestone marks a strategic achievement for our organisation, and we are eager to continue providing you with exceptional services under the regulatory framework set by the MAS.”
This statement reflects Upbit’s commitment to excellence and highlights the trust and confidence placed in Singapore’s robust regulatory framework.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
Singapore’s proactive approach to establishing a transparent legal and regulatory framework for crypto businesses under its Payment Services Act (PSA) of 2019 is noteworthy. The country’s regulation of cryptocurrencies as digital payment tokens under the PSA has been instrumental in cultivating a secure and reliable environment for crypto enterprises.
The MAS’s licensing for crypto firms is strict. It requires detailed checks on anti-money laundering and counter-terrorism financing. Firms must also prove strong cybersecurity practices.
Upbit, by getting the MPI license, shows it meets these tough standards. This confirms Upbit as a reliable and secure platform for crypto transactions.
Upbit Records Spikes in Trade Volume
With the MPI license in its arsenal, Upbit is now poised to offer a broader spectrum of crypto-related services to its clientele in Singapore. These services include digital payment token exchange, custody, and remittance services. Furthermore, the license paves the way for Upbit to forge innovative collaborations with local financial institutions and payment providers.
Last week, Upbit marked a significant trading milestone, recording a daily trading volume of over $8 billion. This underscores its growing influence and presence in the global crypto market.
For the crypto industry, this signifies a careful yet forward-thinking approach by regulators towards digital currency innovations. It represents a balance between encouraging innovation and maintaining security and compliance. This approach sets an example for other countries dealing with the complexities of cryptocurrency regulation.