Circle Receives Major Stablecoin Payment Institution License In Singapore

Circle Receives Major Stablecoin Payment Institution License In Singapore

News
June 8, 2023 by Diana Ambolis
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Circle, a global stablecoin issuer and payments company has received a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS).  This makes Circle the latest cryptocurrency company to receive a major license from MAS, following Crypto.com, which received its MPI license on June 1. Circle’s Singapore affiliate, Circle Internet Singapore, received in-principle
Circle Receives Major Stablecoin Payment Institution License in Singapore

Circle, a global stablecoin issuer and payments company has received a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS).  This makes Circle the latest cryptocurrency company to receive a major license from MAS, following Crypto.com, which received its MPI license on June 1.

Circle’s Singapore affiliate, Circle Internet Singapore, received in-principle MPI approval from MAS in November and opened its office in the city-state in May. The company said that the license will allow it to “offer a wide range of payment services in Singapore, including cross-border payments, digital asset exchange, and merchant acquiring.”

Circle CEO Jeremy Allaire said that Singapore is “integral to Circle’s global expansion.” He added that the company is “committed to working with MAS to develop Singapore as a leading global hub for digital assets.”

The MAS has been actively regulating the cryptocurrency industry in recent years. In 2020, the MAS issued a set of guidelines for cryptocurrency service providers, which require them to be licensed or registered with the MAS.

The MAS’s decision to grant Circle an MPI license is a sign that the regulator is becoming more comfortable with the cryptocurrency industry. It is also a positive development for Circle, as it will allow the company to offer a wider range of services in Singapore.

Also, read – 5 Primary Key Difference Between Stablecoin And CBDC

About Circle

Circle is a global payments company that enables businesses of all sizes to send and receive payments in USDC, a digital dollar stablecoin. Circle was founded in 2013 and is headquartered in Boston, Massachusetts. The company has offices in New York, San Francisco, London, Dublin, and Singapore.

Circle offers a variety of products and services, including:

  • Circle Account: A digital wallet that allows businesses to hold USDC and make payments.
  • Circle Pay: A mobile app that allows businesses and consumers to send and receive payments in USDC.
  • Circle APIs: A set of APIs that allow businesses to integrate USDC into their applications.

Circle is a regulated company and is subject to the laws and regulations of the jurisdictions in which it operates. The company is also a member of the Financial Stability Board’s (FSB) Crypto Assets Working Group.

 

Monetary Authority of Singapore

The Monetary Authority of Singapore (MAS) is the central bank of Singapore. It was established on 1 January 1971 to act as the banker to and as a financial agent of the Government of Singapore. The MAS is also responsible for promoting economic growth and stability in Singapore.

The MAS has a three-pronged approach to achieving its objectives:

  • Monetary policy: The MAS uses monetary policy to influence the supply of money and credit in the economy. This helps to keep inflation low and stable, and to promote economic growth.
  • Financial supervision: The MAS regulates the financial sector to ensure that it is sound and stable. This helps to protect consumers and investors, and to prevent systemic risks from developing in the financial system.
  • Financial development: The MAS promotes the development of the financial sector to support economic growth and stability. This includes promoting financial innovation, and fostering a conducive environment for financial institutions to operate in.

The MAS is a member of the following international organizations:

  • Bank for International Settlements (BIS)
  • International Monetary Fund (IMF)
  • Financial Stability Board (FSB)
  • Asia Pacific Economic Cooperation (APEC)
  • Association of Southeast Asian Nations (ASEAN)

The MAS is headquartered in Singapore. The current Managing Director of the MAS is Ravi Menon.

Here are some of the MAS’s key achievements:

  • Maintaining low and stable inflation: The MAS has been successful in maintaining low and stable inflation in Singapore. This has helped to create a conducive environment for economic growth and stability.
  • Promoting economic growth: The MAS has played a key role in promoting economic growth in Singapore. The economy has grown at an average annual rate of 6.5% since 1971.
  • Protecting consumers and investors: The MAS has been successful in protecting consumers and investors in Singapore. The financial system is one of the most sound and stable in the world.
  • Fostering a conducive environment for financial institutions to operate in: The MAS has created a conducive environment for financial institutions to operate in Singapore. This has helped to attract some of the world’s leading financial institutions to Singapore.

The MAS is a well-respected central bank with a strong track record of achievement. The MAS is committed to promoting economic growth and stability in Singapore, and to protecting consumers and investors.

What does this mean for the cryptocurrency industry?

Circle’s receipt of an MPI license is a positive development for the cryptocurrency industry. It is a sign that the MAS is becoming more comfortable with the industry and is willing to grant licenses to reputable companies. This could lead to more cryptocurrency companies setting up shop in Singapore, which would help to further develop the industry.

The MAS’s decision to grant Circle an MPI license is also a sign that the MAS is committed to promoting innovation in the financial sector. The MAS has a long history of supporting innovation, and this decision is consistent with that history.

The cryptocurrency industry is still in its early stages of development. The MAS’s decision to grant Circle an MPI license is a positive development for the industry and could help to further its growth.