GSR Markets, a cryptocurrency trading firm and liquidity provider, has secured a full Major Payments Institution (MPI) license from the Monetary Authority of Singapore (MAS), as reported on April 4. This license marks a significant milestone for GSR, particularly in the Singaporean market, granting the company expanded capabilities in payment services.
Jinshajiang, the parent company of GSR Markets, received in-principle approval for the license back in October 2023. CEO Song Xin expressed pride in Jinshajiang being the first of its kind in Singapore to attain the MPI license, highlighting the company's dedication to compliance and regulatory standards.
The MPI license empowers companies like GSR to conduct various payment services, including OTC spot and market-making services, with higher transaction volume thresholds. Specifically, licensed entities can exceed limits set by the MAS, such as S$3 million ($2.2 million) for single payment services and S$6 million ($4.4 million) per month for multiple payment services.
Originating in the United States in 2013, GSR has expanded its services globally, offering OTC cryptocurrency trading, derivatives, market-making, and venture capital facilitation. With additional licenses in several U.S. states, the company has established itself as a reputable player in the digital asset space.
Singapore's regulatory environment fosters blockchain-based innovations, positioning the country as a leading digital asset hub. This has attracted numerous cryptocurrency firms seeking to operate in the region, prompting them to pursue MPI licenses. Notable players like Crypto.com, Coinbase, Ripple, OKX, and BitGo have all either obtained or received preliminary approval for MPI licenses in Singapore, underscoring the market's appeal and regulatory openness.
In response to the growing interest in cryptocurrency investments, MAS has taken steps to protect retail investors. This includes issuing guidelines to DPT service providers to deter retail customers from engaging in speculative activities. Additionally, MAS has expanded the scope of the Payment Services Act to encompass various activities related to DPT custody services, token transfers, exchanges, and cross-border fund transfers, reinforcing regulatory oversight in the evolving cryptocurrency landscape.
