Stablecoin issuers Circle and Paxos gain approvals in Singapore

Stablecoin issuers Circle and Paxos have their respective licenses approved by the Monetary Authority of Singapore (MAS), the central bank of Singapore.

Circle has received approval in principle for a major payment institution license that allows it to issue cryptocurrencies and facilitate domestic and cross-border payments, and Paxos has been licensed to provide digital payment token services. .

Circle When Paxos The companies announced the approval on November 2nd. This comes a week after MAS issued two of his consultation documents on proposals to regulate digital payment token service providers and stablecoin issuers under Singapore’s Payment Services Act (PSA). is.

The PSA was passed by the Singapore Parliament in 2019. It aims to regulate payment systems and gives the MAS powers to oversee the conduct of payment service providers.

Circle, the issuer of USD Coin (UDSC), Paxos with Pax Dollar (USDP) are both stablecoins pegged to the U.S. dollar, allowing them to offer their respective stablecoins and other digital payment token products within Singapore.

According to Dante Disparte, Circle’s Chief Strategy Officer and Global Head of Public Policy, the approval is a step towards promoting Singapore’s economic growth under a more innovative regulatory framework. And it will further expand the possibilities of open payment systems.

Circle co-founder and CEO Jeremy Allaire said the license, which is “one of the world’s leading financial hubs,” will “help Circle’s regional and global expansion plans to foster global economic prosperity. ‘ added.

Rich Teo, CEO of Paxos Asia, was also thrilled with the endorsement.

“We are thrilled to have MAS as our regulator and their oversight will allow us to work with the world’s largest companies to safely accelerate consumer adoption of digital assets.”

Related: Singapore MAS Investigates Crypto Firms Ahead of New Regulations: Report

It remains to be seen how many more companies will follow in Circle’s and Paxos’ footsteps, but the easing of restrictions comes as MAS beat out more than 100 of its 170 applicants in the second half of 2021 under a tougher regime. be.

MAS has gone one step further in mid-2022, following the current narrative that began with the bankruptcy of Singapore-based Three Arrows Capital (3AC). From the crypto industry.

Singapore is fighting to regain recognition as one of the more crypto-friendly countries. However, Singapore’s largest bank, DBS, recently decided to expand its crypto trading services only to accredited investors who meet strict criteria, so it remains vigilant with retail investors.

Cointelegraph reached out to Circle and Paxos for comment but did not immediately hear back.