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- 1 Singapore has seen growth in terms of cryptocurrency users under a regulated environment.
- 2 Ripple sought the opportunity to cater the growing demand and received a digital asset offering license.
Payment protocol firm Ripple continues to achieve regulatory permissions one after the other. By making its position stronger in Southeast Asia, the blockchain payment provider has received regulatory approval in Singapore. Ripple, which is still struggling to expand its operations in the US due to regulatory concerns, went on to broaden its presence across countries worldwide.
In an announcement, Ripple stated to receive an “In-principle Approval of a Major Payments Institution License” from the Monetary Authority of Singapore (MAS). The regulatory approval from the Singapore financial regulator would enable the payment protocol for regulated digital asset products and services offerings. It would also help to increase the customer use cases of On-Demand Liquidity (ODL).
We’re honored to obtain In-Principle Approval of a Major Payments Institution License from the @MAS_sg – allowing us to offer regulated digital asset products and services, and scale customer use of #ODL. 🇸🇬
— Ripple (@Ripple) June 22, 2023
Learn more: https://t.co/8Ylc3lZSeg
Ripple in a Handful of Regulated Crypto Firms
Ripple noted in the blog post that the approval for the license placed the company within some of the few 20 crypto companies to be received by the regulator in Singapore. The company’s Singapore-based subsidiary, Ripple Markets Asia Pacific, will be handling the regulated digital payment token products and services in the region, along with increasing the ODL.
The On-Demand Liquidity is primarily an offering from Ripple to help its customers to move liquidity across the world using XRP token without any need of an intermediary like a bank.
As per Ripple, the license allows the company to broaden the use case of crypto payments for the customers in Singapore as well as other regions in Asia Pacific.
Singapore Leading the Asia Pacific Region
Ripple Chief Executive Officer, Brad Garlinghouse, called Singapore a leading global financial center worldwide. He said it is a “prominent gateway: to businesses run in the Asia Pacific region.
“We’re incredibly proud to receive an in-principle license from the MAS, reaffirming our commitment to the region and ongoing proactive engagement with regulators globally.”
Chief legal officer at Ripple, Stu Alderoty, stated countries worldwide are looking at Singapore’s leadership in order to develop a crypto regulations framework. The Southeast-Asian country’s guidance has led others towards a “clear taxonomy and licensing framework.”
Citing the in-principle regulatory approval to Ripple from MAS, Alderoty added it will help the company to support customers seeking to implement blockchain and crypto technologies towards building an “inclusive and borderless financial system.”
Ripple established its Singapore-based arm in 2017 as a headquarter in the Asia Pacific region. The in-principle approval from MAS showcases the country’s efforts to consider the “positive and progressive adoption of digital assets.”
In the last several months, Ripple is said to increase the number of employees to almost double in the Singapore office, to cater the growing demand of crypto asset services in the region.
The blockchain based payment provider reportedly partnered with the Columbian central bank for providing assistance in blockchain technology development in the region. In Montenegro, the company was said to provide CBDC development in the region.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
