The Truth Behind Singapore's Cryptocurrency "Approval Rush": Why 19 Companies Were Approved

It may come as a surprise, but even in Singapore, which is said to have strict regulations, the number of approvals for cryptocurrency-related companies is steadily increasing.

Singapore Strategy in Numbers

Latest statistics as of June 2023:

• Total number of payment licenses granted and in principle approved by the Monetary Authority of Singapore (MAS): 461 companies
• Among these, cryptocurrency-related service providers: 19 companies

It may seem small at first glance, but this is the Singapore approach that “focuses on the quality of regulation.” It means only companies that have passed strict examinations by the MAS, not just the number of permits.

List of Authorized Companies

Major Payment Institution Licensed Companies (11 companies)

Crypto.com, a subsidiary of Coinbase, alongside companies such as Circle (the issuer of USDC), Paxos, Revolut, DBS Vickers, and Independent Reserve, are among the notable names. Particularly noteworthy is that Crypto.com officially entered the Singapore market in August 2022. The entry of this giant with 80 million users suggests the potential of the Singapore market.

Standard Settlement Institution License Obtained Companies (2 Companies)

BHEX (under BHOP Consulting) and Triple A are applicable. These have a cap on monthly transaction volumes, but they function as a stepping stone for emerging companies.

Principle Approval Stage Companies (4 companies)

Ripple, Signum, Blockchain.com, and Coinbase are in the approval pending stage. In particular, Ripple obtained principle approval for a major payment institution license in June 2023. This is a sign that the XRP international remittance network is moving towards a formal expansion into Singapore.

The “True Intentions” of Regulation

The strategy being pursued by Singapore is not a binary choice between “complete regulation or complete openness.”

Under the framework of the “Payment Services Act” introduced in 2019, only companies that meet anti-money laundering measures (AML/CFT), appropriate capital requirements, and transparent governance structures are carefully selected. It strikes a balance between consumer protection and industry development.

There are also companies that have withdrawn or slowed down

Luno has withdrawn its application, and Hodlnaut is facing a management crisis in the aftermath of the Terra crash. Genesis APAC is also effectively halted due to the deterioration of its parent company's management following the chain bankruptcies of 3AC and FTX, despite receiving principle approval. In this era of stricter regulations, a balance between compliance and management foundation is required.

Insights for Japan

The Singapore approach overlaps with the direction the Japanese Audit Committee (FSA) aims for. “Quality over quantity” and “long-term trust building” seem likely to become future regulatory trends in Asia.