Singapore regulators have granted a license to cryptocurrency market maker GSR Markets.
As Bloomberg News noted in a report late Wednesday (April 3), the move is a major blow to the digital asset space, where liquidity providers such as GSR are still operating (in most cases) without regulatory permission. is an unusual move.
GSR Singapore CEO Shin Sung said the company was one of the first companies of its kind to receive a major payment institution license from the Monetary Authority of Singapore (MAS). The license allows GSR to conduct spot over-the-counter and market-making services within the city-state’s regulatory guidelines.
As we mentioned here in February, Singapore, already renowned for its leadership in the Web3 space, is also active in supporting FinTech solutions.
Last year, the city-state’s central bank set aside $112 million to boost local fintech efforts, particularly those leveraging the emerging Web3 technology. Singapore has also attracted major crypto platforms such as Blockchain.com, Circle, Crypto.com and Coinbase, which have applied for licenses to operate within the jurisdiction.
Still, authorities have been working to limit speculative bets on cryptocurrencies by mass-market retail investors since the 2022 “crypto winter.”
According to a report from Bloomberg, Singapore earlier this week expanded its digital asset regulations to include custody, and also to all companies that handle crypto-related fund transfers, regardless of whether they own the money or tokens. The target has also been expanded.
And last year, MAS Managing Director Ravi Menon said private cryptocurrencies could eventually be managed by central bank digital currencies (CBDCs), “well-regulated” stablecoins and tokenized bank debt. He argued that it would be replaced by a monetary system based on
Menon said at a Hong Kong Monetary Authority and Bank for International Settlements (BIS) event that private digital coins “failed miserably the test of money because they cannot maintain value.”
“No one saves their life for these things,” he added. “People buy and sell these things to make a quick buck. Private cryptocurrencies, which are native digital tokens, don’t meet that test, so I think they will eventually exit the scene. ”
The Bloomberg report also notes that GSR and other market makers are in the midst of a resurgence thanks to soaring Bitcoin prices, leading to a broader rally in the crypto market.
