The Monetary Authority of Singapore (MAS) has granted crypto exchange Bitstamp a license to provide services to residents, the company announced Thursday.
This approval is part of Bitstamp’s strategy for broader expansion into the Asia-Pacific region.
In June, MAS mandated that all crypto exchanges serving overseas customers secure a license by Monday.
Failure to comply, according to the regulator, could lead to expulsion from Singapore, financial penalties, or even jail time.
The authority issued a stark warning: obtaining a license would be extremely challenging.
“MAS has set the bar high for licensing and will generally not issue a license. The money laundering risks are higher in such business models and if their substantive regulated activity is outside of Singapore, MAS is unable to effectively supervise such persons.”
Singapore’s new regulatory policy created uncertainty for crypto firms physically located in the country. The Monday deadline forced some entities to cease operations without authorization, casting doubt on their future.
Singapore Builds a Crypto Hub Despite Low Local Adoption
Despite low domestic adoption rates, Singapore is positioning itself as a key cryptocurrency hub in Asia-Pacific, alongside Hong Kong.
Innovative regulations coupled with strong consumer protections attracted a significant influx of crypto businesses to Singapore in 2024. The Monetary Authority approved twice as many crypto business applications in 2024 versus 2023.
Statistical data reveals high awareness but limited participation. An Independent Reserve study indicates that approximately 94% of Singaporeans know at least one digital asset.
Conversely, only 29% admit to previously or currently owning cryptocurrency.
Most Singaporean crypto owners cite Bitcoin as their cryptocurrency of choice, with 68% holding BTC.
