As the United States intensifies its regulatory crackdown, the global cryptocurrency industry has finally received rare good news. Blockchain payments company Ripple announced on Thursday that it has obtained in-principle approval from the Monetary Authority of Singapore (MAS), the country’s central bank, to operate in Singapore and offer digital payment token products and services.
Editor’s note: Under the Payment Services Act, stablecoins, Bitcoin, and other cryptocurrencies are classified as digital payment tokens (DPT). Ripple: Continuing to Expand Singapore Operations Ripple stated in a statement that its Singapore subsidiary and Asia-Pacific headquarters, Ripple Markets APAC, has received in-principle approval for a Major Payment Institution (MPI) license from the Monetary Authority of Singapore. This license will allow Ripple to offer regulated digital payment token products and services and further expand its On-Demand Liquidity (ODL) foreign exchange service, enabling more customers to use XRP for settlement in foreign exchange transactions. Ripple noted that ODL services experienced unprecedented business growth momentum globally last year, with a significant portion of that growth driven by the Singapore market. As a result, Ripple has doubled its headcount in Singapore over the past year and intends to continue expanding its local operations. Ripple’s General Counsel, Stuart Alderoty, revealed that the company’s current goal is to obtain the formal license, but there are still certain processes to complete before the application is finalized. For example, Circle, the issuer of the USDC stablecoin, received in-principle approval in November last year and only obtained the official Major Payment Institution (MPI) license from the Monetary Authority of Singapore in June this year. Exodus from the United States Meanwhile, U.S. regulators are aggressively cracking down on the cryptocurrency industry, prompting companies such as Coinbase, Circle, and Gemini to conduct business outside the United States. Apart from Singapore, Ripple currently has 14 offices in locations including London, Mumbai, Sydney, Shanghai, and Dubai. Stuart Alderoty said, “While we are facing difficulties in the United States, Ripple will continue to invest time and resources in countries such as Singapore.” The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple in 2020, alleging that XRP constituted an unregistered securities offering worth $1.3 billion, violating investor protection laws.In January, Brad Garlinghouse, CEO of the company, anticipated that a verdict in the protracted legal battle could be reached within a few months, with a resolution potentially arriving as early as June. He also expressed confidence in the outcome of the case.
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