Singapore will grant formal regulatory approvals to crypto exchanges for the first time as Asian city-states step up their challenge to compete with Hong Kong as a digital financial hub.

After applying for a license in April last year, Australia’s Independent Reserve exchange was “in principle” approved by the Monetary Authority of Singapore to act as a regulatory provider of digital payment token services.

The company is the first such vendor to receive approval from Singapore regulators for around 170 applicants, including the Global Exchange. Binance and Gemini. Some groups, including Binance, have already been exempted from serving the city’s individual and institutional investors pending a formal license.

“We have been waiting for this day for over a year,” said a foreign cryptocurrency exchange operating in the city. “Now everyone is wondering who will get the approval next. “

Thanks to Singapore, Global Cryptocurrency Group Grows Fast in Singapore Favorable Regulatory Environment This contrasts sharply with other markets that are taking a more stringent approach to the industry.

Regulations vary widely between jurisdictions. This means that once the watchdog starts, there are several major world exchanges looking for licenses in different countries. Take a closer look at how they work.

Singapore’s resource-poor economy relies heavily on financial services, making Singapore a more attractive business hub, as its competing Asian financial center, Hong Kong, is viewed as: Not very attractive under the national security.

The digital asset industry has become another frontier in the competition from rival cities.

Like mainland China, Hong Kong Tighter position in the bohemian cryptocurrency industry. The city is set to restrict crypto trading to accredited or institutional investors under new legislation.

Singapore, on the other hand, has made it easier for foreign cryptocurrency groups to establish offices and serve residents and businesses, albeit with restrictions such as volume restrictions. In January 2020, a payment method was introduced that allows businesses to apply for a license. Around 90 digital asset companies have applied for and operate tax free.

Founded in 2013, Independent Reserve was allowed to operate Monday night, sending a wave of enthusiasm to the industry as a whole in anticipation of further progress. The company has 200,000 customers in Singapore, Australia and New Zealand.

Lux Sondy, Managing Director of Singapore-based Independent Reserve, said:

MAS is keen to establish a city-state as a global hub for the blockchain ecosystem, and the “long process” of licensing is focused on consumer protection and anti-money laundering measures. money by regulators. He added that it was because he had left him.

These included the implementation of “travel rules” that required crypto companies to share personally identifiable information for transactions above a certain value. All successful applicants in Singapore must implement the rules in accordance with MAS guidelines.

Eric Anziani, COO of Crypto.com, Singapore’s fast-growing digital currency exchange platform, which has a strong presence in Hong Kong, is exposed to heightened geopolitical risk in Hong Kong. Noted. “Singapore is also good for individual investors,” he said. “In terms of talent, I think we now have more opportunities.”

The head of another world stock exchange in the city-state said the “overhang of China” had made Hong Kong a cryptocurrency destination, especially for custodial services. “Many of our clients were concerned that the Chinese authorities would come forward and put their assets in offline vaults. “