USDC stablecoin issuer, Circle, gained approval for an operating license from Singapore’s Central Bank, the Monetary Authority of Singapore (MAS), on Wednesday, November 2nd.
MAS granted Circle a Major Payment Institution license, which allows it to operate as a payment company and provide cryptocurrency services in the country. The stablecoin issuer will not only be able to deliver cryptocurrency services but will also facilitate efficient local and cross-border payment services for users in the country.
The CEO and Co-Founder of Circle, Jeremy Allaire, commented on Circle’s newly approved digital payment license. He said that the Circle’s goal of global expansion and cryptocurrency advancement in Singapore had been made easier with the backing of MAS. He noted that Circle would work to make more productive partnerships with MAS to make the world a better place for cryptocurrency technologies.
Allaire explained that Circle was honored to be one of the few cryptocurrency organizations to acquire an in principle license. He said that the company anticipates future partnerships with MAD which will lead to the growth and success of cryptocurrency innovations and blockchain ecosystems in Singapore.
MAS to Govern all Payment Service Providers
The proposal for the license, granted on Wednesday, has been on hold and under review by MAS for a week. In line with Singapore’s Payment Services Act, MAS held several consultation papers that suggested regulating digital payment token service providers and stablecoin issuers (PSA).
Singapore’s Payment Service Act was enacted in 2019 by the country’s payment system regulatory body, the Parliament of Singapore. The act ratifies MAS’s authority to govern and regulate all payment service providers in the country and their operational services.
With the approved license, Circle can provide token products within the country. The stablecoin issued plans to accelerate the growth and adoption of cryptocurrencies and public payment systems regulated under a consumer-prioritized framework.
The Chief Strategy Officer and Global Head of Public Policy at Circle, Dante Disparte, explained that the newly granted license would enable Circle to actualize its goals to propel economic growth and establish Singapore as a center for blockchain and cryptocurrency activities.
He said that the license would help Circle connect with the right people and create more awareness of digital assets and crypto payment systems and fintech regulations and how these innovations can help facilitate economic growth and present Singapore as a major center for cryptocurrency technologies.
Singapore Pushes to Become a Global Crypto Hub
Circle has not been the only crypto service provider to gain license approval from Singapore. Previously, Singapore offered an in-principle license approval to Blockchain.com and Coinbase – the most prominent US cryptocurrency exchange company. The country also granted a license to Paxos the same day it issued Circle’s license.
Recently, MAS has doubled its approvals for crypto payment and service providers in the country. The country seeks to regain its position as one of the global crypto-friendly hubs. As a result, MAS tightens its regulatory laws to ensure all licensed operators and providers in the country follow strict rules.