SINGAPORE - European cryptocurrency exchange Bitstamp has received an in-principle approval for its licence application to offer digital asset services here.
The exchange on March 6 said it received a preliminary nod from the Monetary Authority of Singapore (MAS) for its major payment institution licence application. Before this, it was operating under an exemption from the Payment Services Act.
Mr Leonard Hoh, the exchange’s Asia-Pacific general manager, said under the Act, the firm will be able to provide cross-border money transfer and digital payment token exchange services to customers in Singapore and selected countries across the region.
Mr Jean-Baptiste Graftieaux, the exchange’s global chief executive, said the development brings the firm a step closer in its quest to expand its footprint across important markets in the Asia-Pacific and globally.
Mr Hoh said: “We see Singapore’s positive regulatory and commercial landscape helping to spearhead the institutionalisation and broader adoption of digital assets.
“We know that we have a strong product fit for the developing payments and stablecoin arena, especially when partnering with institutions seeking out counterparties that are similarly licensed in highly regarded jurisdictions like Singapore.”
The firm noted that the in-principle approval comes at a time when the market is rebounding, with the European Union’s framework for crypto expected to firm up in 2024 and the United States Securities and Exchange Commission (SEC) approving Bitcoin exchange-traded funds (ETFs).
Mr Hoh said Bitstamp has been a critical infrastructure provider for Bitcoin markets and other large-cap cryptocurrency markets since 2011.
The exchange is one of six that provide market data for the CME CF Bitcoin reference rate used by the spot Bitcoin ETFs in the US and other market participants.
In December 2023, French bank Societe Generale’s subsidiary Societe Generale-Forge listed its stablecoin on Bitstamp. It had issued its euro-pegged stablecoin or EUR CoinVertible (EURCV) on the Ethereum public blockchain.
A stablecoin is a digital token that is usually pegged to a major currency on a one-to-one basis.
Bitstamp said it received its first licence in 2016 in Luxembourg and now has over 50 licences and registrations in global markets including the United Kingdom, the Netherlands, and New York.
