Bitstamp, a European cryptocurrency exchange, has received a license to provide digital asset services in Singapore.
A report by The Straits Times on Wednesday indicates that the approval from the Monetary Authority of Singapore(MAS) will allow Bitstamp to strengthen its presence in key markets around the world and in the Asia-Pacific region. Previously, Bitstamp had been operating under an exemption from the Payment Services Act, but has now received an initial license as a large payment institution.
Bitstamp will offer services to users in Singapore
The exchange may offer digital payment token exchange and money transfer services between countries to its customers in Singapore and selected countries around the world .
Bitstamp’s Asia-Pacific general manager, Leonard Hoh, highlighted favorable regulations and market in Singapore that support the institutionalization and wider adoption of digital assets.
“We know we have a strong product suitable for the growing payments and stablecoin market, especially as we work with institutions seeking counterparties with similar licenses in highly regarded jurisdictions such as Singapore.”
In most cases, approval comes at a time when the cryptocurrency market is experiencing a surge.
Since 2011, Bitstamp has provided the basic infrastructure for large cryptocurrency markets such as Bitcoin. The exchange is one of six platforms providing market data on the CME CF Bitcoin reference rate, which is used by Bitcoin ETFs in the United States and other market participants.
December 2023. Bitstamp placed the EUR CoinVertible (EURCV) on its Societe Generale-Forge platform . This partnership strengthened Bitstamp’s position as a reliable exchange.
Over the years, the various licenses and registries Bitstamp has obtained have contributed to its proliferation. Since obtaining its first license in Luxembourg in 2016, the exchange has already acquired more than 50 licenses and registrations around the world, including in the UK, the Netherlands and New York.
Finance-oriented Singaporeans invest in cryptocurrencies
More than 50% of financial professionals in Singapore see cryptocurrency as the future of finance. A report conducted in Q4 2023 on more than 2,000 adults by Seedly and Coinbase indicates that 57% of respondents currently own digital assets. Most of those who responded had between $1,000 and $25,000 invested.
Singapore is actively working with global financial authorities on digital currencies. In September 2023. The Monetary Authority of Singapore (MAS), in cooperation with the Bank for International Settlements and the central banks of France and Switzerland , completed a joint test of cross-border trading and wholesale settlement of central bank digital currencies.
In July, Singapore also unveiled plans to introduce a trust requirement on cryptocurrency exchanges to boost investor confidence and prevent potential losses.
