Circle Receives Digital Token License in Singapore

Circle, the creator of the USDC stablecoin, is extending its reach in the Asian market with a new license to conduct business in Singapore.

The Monetary Authority of Singapore (MAS), the country's central bank, has granted Circle Singapore, affiliated with Circle Internet Financial, a Major Payment Institution (MPI) license.

We are honored and excited to share that Circle Singapore has obtained a Major Payment Institution (MPI) License from @mas_sg! https://t.co/RZSfeBZiqJ

Now, we can offer digital payment token services alongside cross-border and domestic money transfer services in Singapore and…

— Circle (@circle) June 7, 2023

With the MPI license, Circle Singapore can now provide various services, including local and international money transfers within Singapore. Institutional users will also gain access to the Circle Account, enabling them to use USDC, the world's second-largest stablecoin.

The cryptocurrency market in Singapore and the rest of Asia considers this license issuance a significant development. Circle highlights the importance of this achievement for promoting reputable and regulated digital currencies in the region.

Singapore's role in Circle's international growth

Jeremy Allaire, the co-founder and CEO of Circle, highlights Singapore's role in the company's international growth. He emphasizes its commitment to advancing global economic development.

According to Dante Disparte, Circle's chief strategy officer and head of global policy, the MPI license demonstrates the company's ongoing dedication to collaborating with progressive leaders and stakeholders worldwide.

Despite facing criticism and increased scrutiny due to the FTX controversy involving Sam Bankman-Fried, Singapore remains a hub for web3 enterprises.

In April, the nation's central bank and police outlined plans to establish a framework. The framework aims to provide traditional financial institutions better access to crypto partners, preventing a US-like crisis. Last year, MAS recommended stablecoins. These regulations, including capital and reserve requirements for issuers and restrictions on locking cryptocurrency assets for lending and staking purposes.

As regulatory pressures intensify in the US, the USDC stablecoin issuer is among the significant cryptocurrency companies shifting their focus to Asia. This week, both Coinbase and Binance faced legal action from the SEC.

Recent reports suggest that not only assets but also entities holding crypto assets are increasingly moving away from the United States to Asia, indicating a growing divide in the industry.