Crypto Market Maker GSR Wins Singapore’s Stringent License

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

About Author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

Author Profile

Share

Copied

Last updated: 

April 4, 2024 03:16 EDT

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Singapore regulators have granted a Major Payment Institution (MPI) license to crypto market maker GSR Markets, establishing the company as among the initial recipients of such authorization within its sector.

MPIs are subject to stricter regulations regarding customer fund protection. The heightened oversight reflects the potential for greater risk associated with the scale of their activities.

Fueled by Bitcoin’s sustained strength and resurgent investor confidence, which have spurred a surge in trading activity, market makers like GSR are enjoying a period of resurgent profitability. GSR’s MPI follows its successful in-principle approval for the same license in October.

Singapore’s Reporting Obligations for MPI Licensees

The awarding of an MPI license is contingent upon applicants fulfilling specific financial criteria. This includes upholding a minimum base capital level of $185,000 and submitting regular financial statements to the Monetary Authority of Singapore (MAS).

Furthermore, MPI license holders are subject to ongoing reporting obligations to MAS. These encompass notifying the authority of any material alterations to their business operations, along with any suspicious activities identified through Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) controls.

Singapore’s Broader Vision for Crypto’s Future

Last year, Singapore solidified its position as a destination for crypto millionaires seeking tax-friendly havens to safeguard their crypto assets. The Crypto Adoption Index by Henley & Partners awarded Singapore a 10 on 10 score in the tax-friendliness parameter.

So far, the MAS has granted MPI licenses to a total of 19 firms. These include prominent players such as Blockchain.com, Circle, Coinbase, Paxos, and Upbit.

In furtherance of its ambitions to become a leading institutional hub for the digital asset industry, Singapore recently expanded the scope of its digital-asset regulations. These revisions encompass the custody of tokens and encompass a broader range of firms involved in fund transfers.