Ripple has secured preliminary regulatory greenlight in Singapore, one of the top crypto hubs in the world. The company announced on Wednesday June 21 that it has achieved ‘In-Principle Approval’ from the Monetary Authority of Singapore (MAS) for its subsidiary Ripple Markets APAC Pte Ltd.
The license will allow Ripple to offer regulated digital payment token products and services in Singapore, and also afford it the opportunity to grow the userbase of its its crypto-enabled On-Demand Liquidity (ODL) service. Before now, Singapore has played a major role to drive the adoption of the ODL in 2022 with a significant majority of ODL transactions flowing through the country.
This is one of the reasons Ripple is seeking a license in the country, and also because the number of users doubled in the past one year. Speaking on the regulatory environment in Singapore, Ripple CEO Brad Garlinghouse said:
“Singapore is a leading global financial center, and a prominent gateway to business in Asia Pacific. We’re incredibly proud to receive an in-principle license from the MAS, reaffirming our commitment to the region and ongoing proactive engagement with regulators globally,”
“The MAS continues to be a global leader in establishing clear rules of the road to recognise the innovation and real-world utility of digital assets, and its benefits to the global financial system. We look forward to strengthening this partnership to collectively propel the growth and development of the digital assets ecosystem in Singapore,” he added.
Crypto Projects Look to Singapore
The crypto industry is facing serious regulatory hurdles the world over. Ripple itself has been in court since 2020 to prove against the US securities and exchange commission (SEC) that XRP is not a security. More recently, crypto exchanges Binance and Coinbase came under intense clampdown from the same agency.
This situation isn’t peculiar to the US, since many other countries are employing harsh methods to enforce crypto regulations. However, Singapore has distinguished itself as an early haven for crypto companies through its friendly regulatory approach.
“As more countries develop regulatory frameworks for crypto, many are looking to Singapore’s early leadership in developing a clear taxonomy and licensing framework. This in-principle regulatory approval from the MAS will enable us to better support our forward-looking customers looking to hone in on blockchain and crypto technologies to build a more inclusive and borderless financial system,” said Stu Alderoty, Chief Legal Officer of Ripple.
Ripple Making Progress Despite Court Case
In spite of the ongoing court case with the SEC, Ripple has been making giant strides in the crypto industry. Apart from its expansion which Singapore is now part of, the company engages in activities that help to develop the crypto industry such as the partnership with tertiary institutions to foster crypto and blockchain development worldwide.
The company will potentially do even greater work if it succeeds in winning the case against the SEC, which will also be a victory for the entire crypto industry. Meanwhile, XRP, the crypto asset under contention is currently one of the top performing cryptocurrencies among the top ten by market capitalization.
Winning the case will further encourage the adoption of the crypto asset and of course, probably take it higher up the ladder. The asset has been one of the best performing since the year began despite the case by the SEC that it is a security.
