Coingate, a leading provider of cryptocurrency payment solutions, announced that it had been granted a license for operations in Singapore.
The license provided by the Monetary Authority of Singapore (MAS) is expected to be a significant development for the cryptocurrency industry in the country. One of the primary reasons is that the regulatory body provides greater legitimacy and clarity for businesses operating in the space.
MAS has supported the development of the cryptocurrency industry in Singapore and has worked with businesses and startups to promote innovation and growth. The granting of a license to Coingate is a further endorsement of the cryptocurrency industry by the MAS.
But how are the latest turn of events going to influence the crypto industry? Let’s find out in the following sections.
Coingate’s Singapore License: A Positive Influence For The Cryptocurrency Industry?
Gaining a license to Coingate provides greater legitimacy and regulatory clarity for businesses operating in the cryptocurrency space in Singapore. This is a positive development for the industry, as it will help to attract more businesses and investors to the space.
According to Tharman Shanmugaratnam, the minister in charge of the MAS (Monetary Authority of Singapore), who also oversees financial institutions in Singapore’s Central Bank, is in the final stages of reviewing the payment processor’s application for licensing their services.
The license also provides greater consumer protection, as Coingate will now be subject to MAS regulations. This means that consumers can be confident that their funds are safe and protected and that they will be able to receive compensation if something goes wrong.
Apart from being one of the 170 applicants, we think many other factors will play a positive role in the platform and crypto industry’s future. For example, with Coingate leaving its global footprint among different countries, we’re sure there will be more transactions on a worldwide scale.
Besides, considering that Coingate is one of the prominent crypto platforms, we are expecting a positive influence from the latest turn of events. With the exchange now licensed to operate in Singapore, it will have a broader customer base, adding to its total valuation and overall goodwill.
Coingate’s Singapore History
Coingate has been operating in Singapore since November 2017, but it did not have a license. Only after they applied to the Monetary Authority of Singapore were they given a license to operate.
Besides, this is the first time that MAS has granted any cryptocurrency exchange such a license. It is also one of MAS’s first licenses ever issued to exchange.
Coingate has been operating in the European Union and the United States over the past four years and finally received a license from MAS to operate in Singapore. The company will work with local banks and financial institutions to provide its services. In addition, it has been expanding its operations to Asia, with Singapore’s latest addition in recent months.
The company will be able to offer its services across the island nation and provide support for the local currency, the Singapore dollar. This will allow them to serve local customers and offer their services in SGD, EUR, USD, and GBP.
The Future Is Green For Coingate
This is a positive development for the company as it can comply with all regulatory requirements in Singapore. In addition, Coingate is also planning on opening an office in Hong Kong, enabling it to serve customers from across Asia.
Overall, Coingate’s latest movements seem that the exchange is targeting better parts of Asia to ensure a lasting impression on the market. Perhaps, the exchange could play a significant influence on the future of the industry someday.
Quick Takeaway:
- According to Shanmugaratnam’s response to a parliamentary inquiry yesterday, Singapore has acquired over 480 crypto service license applications under the PSA (Payment Services Act), which took effect in January 2020. A total of 170 applicants for a permit to offer DPT (Digital Payment Token) services or around 35% of those have been submitted.
- To date, Singapore has not granted DPT providers a crypto license. Currently, DPT service providers, including Bitcoin exchanges Gemini, Coinbase Singapore, and Binance Asia Services, operate in Singapore without being required to get a license under the Payment Services Act. Until an application is withdrawn by the applicant or is authorized or denied by MAS, the exclusion is in effect.
- “MAS carefully examines each application and considers several variables. These comprise the applicant’s comprehension of risks associated with financing terrorism and money laundering (“TF/ML”) and the technical risks posed by its business model, in addition to the effectiveness of measures put in place to minimize such risks, according to Shanmugaratnam. Applicants must adhere to the ML/TF requirements and technology risks outlined in MAS’ regulations and notices to be accepted.
