Blockchain-based payments company Ripple has obtained regulatory approval in principle from Singapore’s financial regulator to offer digital asset payments and token products in the city-state.
Ripple confirmed the approval of the Monetary Authority of Singapore (MAS) in a June 22 statement. The approval will allow its affiliate, Ripple Markets Asia Pacific, expand its liquidity on demand. ODL helps Ripple customers move XRP around the world without banks stepping in as middlemen.
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
We are honored to obtain a Major Payments Institution License Approval from @MAS_sg; which allows us to offer regulated digital asset products and services, and scale the use of #ODL by clients. Read more information:
the signature solicitous the institutional payment license under the Singapore Payment Services Act.
Ripple’s CEO, Brad Garlinghouse, praise to the Singaporean regulator for its “innovation-focused and pragmatic approach” to cryptocurrency-related services, adding that the country will provide a “prominent gateway” for Ripple’s business operations in the Asia-Pacific region..
Ripple’s legal director, Stu Alderoty, also noted that Singapore’s “early leadership” is paving the way for other regulators looking to develop a “clear taxonomy and licensing framework.”
1/ @MAS_sg has built a workable framework that truly unites consumer protection, market integrity and innovation. They’ve also outlined a clear taxonomy to classify and regulate digital assets – making it possible for companies like Ripple to build and offer compliant products.
— Stuart Alderoty (@s_alderoty) June 22, 2023
1/ @MAS_sg has created a viable framework that really brings together consumer protection, market integrity and innovation. They have also outlined a clear taxonomy to classify and regulate digital assets, allowing companies like Ripple to create and offer compliant products.
Alderoty explained that the approval broadens the reach of Ripple customers.
“This regulatory approval-in-principle from MAS will allow us to better support our forward-thinking clients looking to refine blockchain and cryptocurrency technologies to build a more inclusive and borderless financial system.”
In 2022, Ripple managed to double the number of employees at its Asia Pacific headquartersas its Singapore base experienced a majority share of ODL transactions flowing through the city-state.
MAS published its own Purpose Bound Money white paper on June 21, which proposes rules for fintechs providing digital money services in Singapore.:
.@MAS_sg published a whitepaper proposing a common protocol to specify conditions for the use of digital money such as CBDCs, tokenized bank deposits, and stablecoins on a distributed ledger.
— MORE (@MAS_sg) June 21, 2023
@MAS_sg published a white paper proposing a common protocol for specifying the conditions of use of digital money such as CBDC, tokenized bank deposits, and stablecoins on a distributed ledger.
While Ripple’s path to compliance with Singapore came without much in the way of legal hurdles, this has not been the case elsewhere..
Ripple’s legal team has had its hands tied with the United States Securities and Exchange Commission since December 2020 after they were sued by the regulator for allegedly offering XRP – the token that powers the XRP Ledger – as an unregistered security.
According to Garlinghousea ruling on the high-profile case will be issued in the coming months.
On June 15, Ripple partnered with Colombia’s central bank, Banco de la República, to pilot a central bank digital currency on its XRP Ledger..
The company has also partnered with the central banks of Montenegro and Thailand, as well as many other regional banks and financial institutions around the world..
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