Singapore regulators have granted a Principal Payment Institution (MPI) License to cryptocurrency market maker GSR Markets, establishing the company among the initial recipients of such authorization within its sector.
MPIs are subject to stricter regulations regarding the protection of client funds. The increased oversight reflects the potential for increased risk associated with the scale of its activities.
Powered by Bitcoin Sustained strength and resurgent investor confidence, which have spurred an increase in trading activity, market makers like GSR are enjoying a period of resurgent profitability. The GSR MPI continues its approval in principle successful for the same license in October.
Singapore reporting obligations for MPI licensees
The granting of an MPI license is dependent on applicants meeting specific financial criteria. This includes maintaining a minimum base capital level of $185,000 and submitting regular financial statements to the Monetary Authority of Singapore (MAS).
Additionally, MPI license holders are subject to ongoing reporting obligations to the MAS. These include notifying the authority of any material disruption to your business operations, along with any suspicious activity identified through anti-money laundering and counter-terrorism financing (AML/CFT) controls.
Singapore's broader vision for the future of cryptocurrencies
Last year, Singapore consolidated its position as a country destination for crypto millionaires looking for tax havens to safeguard their crypto assets. Henley & Partners' Crypto Adoption Index gave Singapore a score of 10 out of 10 on the tax ease parameter.
So far, the MAS has granted MPI licenses to a total of 19 companies. These include prominent players such as Blockchain.com, Circle, Coinbase, Paxos, and Upbit.
To further its ambitions of becoming a leading institutional hub for the digital asset industry, Singapore recently expanded the scope of its regulations on digital assets. These reviews cover token custody and cover a broader range of companies involved in fund transfers.
