Singapore subsidiaries of Coinbase Global Inc. and Binance Holdings Ltd. are among the 70 remaining companies applying for a license to provide cryptocurrency-related services under the jurisdiction of the Asian city-state.
According to the information published on the MAS (Monetary Authority of Singapore) website, out of the 170 firms that applied for a license to provide services related to digital assets last year, less than half are working at the moment. It’s become known that earlier, 30 out of the 170 companies dropped out, two applications got rejected, and only three ended up approved. However, at the moment, only 70 of the remaining 135 applicants are awaiting a response from MAS. Two of these are the Singaporean divisions of Coinbase Global Inc. and Binance Holdings Ltd.
According to Bnn Bloomberg, Singapore is striving to find a balance between adhering to regulatory standards and attracting enough companies to become a key player in the cryptocurrency market. MAS Managing Director Ravi Menon is cautious of the idea as he believes that many merchants focused on offering crypto retail services are at the very least untrustworthy. Moreover, the digital asset market itself is full of risks associated with price fluctuations and the extended possibilities for illegal activities that it entails.
The volume of local business is growing, which is clear from the data published by the largest lender in Southeast Asia, DBS Group Holdings Ltd., based in Singapore. Its brokerage division is one of the three companies that have already received MAS licenses. The other two businesses are Singapore-based FOMO Pay and Australia’s Independent Reserve.
However, Singapore isn’t the only player in the international arena that has decided to contest for the crypto ‘throne’. The same goal has been set before by Singapore’s #1 Asian rival, El Salvador, although the latter is still lagging behind, owing to its recent rocky introduction of Bitcoin as legal tender.
Singapore is actively trying to become an international crypto hub, whose jurisdiction would encompass the lion’s share of the entire cryptocurrency business at large. However, at the same time, the city-state also strives to ensure that companies meet its high-quality standards and comply with its regulatory standards, which should help protect potential crypto service consumers from falling victim to fraud.
Should the government pull that off, it might just see its national and international economy figures skyrocket, opening up a sea of opportunities for crypto traders and investors worldwide.
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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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