Circle and Paxos have each received approvals for their respective licenses from the Monetary Authority of Singapore, the city-state’s central bank.
Circle received in-principle approval for a major payments institution license, allowing it to issue cryptocurrencies and facilitate domestic and cross-border payments, while Paxos received its license to offer digital payment token services.
Circle and Paxos both announced their approvals on Nov. 2, which came a week after the MAS issued two consultation papers on proposals for regulating digital payment token service providers and stablecoin issuers under Singapore’s Payment Services Act.
The PSA was passed by the Singapore Parliament in 2019, which purports to regulate payment systems and authorizes MAS to oversee the conduct of payment service providers.
Circle, the issuer behind USD Coin, and Paxos with its Pax Dollar, both United States dollar-pegged stablecoins, will now be able to offer their respective stablecoins and other digital payment token products within Singapore.
According to Dante Disparte, Circle’s chief strategy officer and global head of public policy, its approval is set to open up greater potential for cryptocurrencies and open payment systems to drive economic growth in Singapore under the more innovative-friendly regulatory framework.
