The license will allow Ripple to better support its “forward-looking customers,” as well as facilitate the process of building a “more inclusive and borderless financial system.”
blockchain solution provider Wave has received in-principle approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution License. As a result, its subsidiary in Singapore – Ripple Markets APAC Pte Ltd – is one of the few companies that can operate in the country and offer regulated digital payment token products and services to citizens.
Ripple CEO brad garlinghouse Commented:
“Singapore is a leading global financial center and a major gateway for business in the Asia Pacific region. We are incredibly proud to have received the in-principle license from MAS, which confirms our commitment to this sector and our ongoing active engagement with regulators globally.
The in-principle regulatory approval from MAS is an important milestone for Ripple, which has been consolidating its position in Singapore since 2017, when it opened its Asia Pacific headquarters. As Ripple’s Chief Legal Officer Stu Alderotti explained, the license will allow the company to better support its “forward-looking customers,” as well as facilitate the process of building a “more inclusive and borderless financial system.”
What is Major Payment Institution License?
In 2020, the Payment Services Act (PSA) came into force in Singapore, streamlining the payment services regulatory framework under a single law. According to the PSA, there are three classes of licenses under which MAS is regulated, one of them being major payment institutions which allow the license holder to perform any number of payment services if the activity exceeds specific threshold limits.
Allows license holders to provide account issuance services, domestic money transfer services, cross-border money transfer services, merchant acquisition services, e-money issuance services, digital payment token services and money-changing services.
Since 2020, MAS has received over 680 applications for payment services licence. Some applications were rejected and around 214 applications were withdrawn. For example, binanceIts branch in the region – Binance Asia Services (BAS) – has withdrawn its application for a license from MAS in 2021, citing “strategic, commercial and development considerations”. It continues to operate in Singapore, with a focus on blockchain innovation.
So far, MAS has approved 190 major payment institution licenses and 11 digital payment token service licenses.
Ripple’s growth in APAC
Ripple’s presence in the Asia Pacific region has been strong, with the company viewing Singapore as one of its fastest growing markets and at the top of the list for recruitment. In the past year, its workforce has doubled to 50 employees.
brad garlinghouse Said,
“Singapore is a leading global financial centre, and a major gateway for trade in the Asia-Pacific.”
Ripple’s transactions have increased by 130% year-on-year. In addition, its On-Demand Liquidity (ODL) service in APAC is set to grow by more than five times in 2022 in response to growing demand for quick settlements and immediate access to funds. Currently, Ripple is focusing on further consolidating its position in the region.
Daria is a crypto enthusiast who strongly believes in the future of blockchain. Being a hospitality professional, she is interested in finding ways in which blockchain can transform various industries and bring our lives to a different level.
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