1. Home
  2. Anchorage


Blockchain.com gets regulatory nod from Singapore’s central bank

Blockchain.com becomes the second crypto exchange in two days to receive preliminary approval to provide crypto services within the growing crypto hub.

Crypto exchange Blockchain.com has become the latest crypto company to secure preliminary approval from Singapore’s central bank to provide Digital Payment Token services in the city-state.

Blockchain.com’s regulatory approval follows hot on the heels of Coinbase, which revealed it had received the same “in-principle” approval from the Monetary Authority of Singapore (MAS) on Oct. 11.

If officially approved, Blockchain.com would join the likes of companies already licensed for digital Payment Token services including crypto exchanges DBS Vickers and Independent Reserve, digital payment solution provider FOMO Pay, and crypto-friendly payments app Revolut, among others.

Blockchain.com CEO and co-founder Peter Smith commended the country’s regulators for creating a “transparent regulatory process” to foster innovation, stating:

“Blockchain.com commends the Monetary Authority of Singapore on its transparent regulatory process that prioritizes crypto industry oversight while allowing innovation to thrive.”

It is not the first company to make a positive reference to the straightforward regulatory environment in Singapore for crypto companies.

Recently, digital asset platform Anchorage Digital co-founder and president Diogo Mónica pointed to Singapore’s strong regulatory environment and the emergence of a crypto hub as its motivation to choose the city-state as a “jump point” into the Asian markets.

Mónica also highlighted in contrast the lack of regulatory clarity in the United States as a major issue, suggesting that even if a company understands what rules govern an asset it can be difficult to determine which of the 15 regulators they need to engage with.

Related: Why Singapore is one of the most crypto-friendly countries

In August 2021, crypto exchange Independent Reserve was one of the first of 170 global competitors to receive preliminary approval for the DPT license.

CEO Adrian Przelozny also made a positive reference to the transparency of Singapore's regulatory environment, noting at the time:

“A well-regulated environment will benefit both investors and crypto industry stakeholders. With tailormade rules for the crypto industry, Singapore currently has the clearest and most detailed licencing requirements of any jurisdiction in Asia”

Przelozny suggested the license grants “will continue to put Singapore in pole position as the leading financial hub in Asia."

Blockchain gaining adoption in more than just DeFi: Report

Anchorage co-founder to US regulators: ‘What we want is clarity’

There’s “15 different regulators” and “basically no clarity” when it comes to cryptocurrency regulation in the United States, according to Diogo Mónica.

Anchorage Digital co-founder and president Diogo Mónica has called for regulatory clarity in the United States, which he said remains muddy due to the politicization of Web3 technology and a lack of coordinated effort from the industry.

Speaking to Cointelegraph ahead of the company’s push into the Asian market, Mónica said there was a night-and-day difference between the regulatory experience in Singapore compared to the U.S.

“Singapore, it really is a breath of fresh air […] It's very different to have one regulator,” Mónica said, adding regardless of the asset type it’s the Monetary Authority of Singapore (MAS), the country’s central bank, “that you interact with for everything.”

While in the U.S., he believes there’s “basically no clarity” with little information on where assets legally fit, adding even if a company understands the rules governing an asset “you barely know which regulator you actually have to engage with.”

“We have 15 different regulators, and all of them are fighting in the public eye for dominance of the industry and making contradicting statements. What we want is clarity. We want some kind of regulation.”

Mónica said the U.S. made Web3 a partisan issue, politicizing the technology and labelling it as left or right wing, which afterwards became “political jockeying sticks versus actually being [about the] technology.”

“I have no idea how we did this, but it's supposed to be bipartisan, it’s not ‘blue’ or ‘red’ it's supposed to be, in the case of Bitcoin, ‘gold’, right? It's ‘digital gold’, so that's the color it should be.”

He believes the industry’s lack of a “concentrated and coordinated approach” in communicating certain aspects, such as its environmental, social, and corporate governance (ESG) message, has played a part in this, though high-profile mistakes have also contributed to the issue.

“Of course, there's been tons of unforced errors,” Mónica added, making particular reference to the U.S. Securities and Exchange Commission’s (SEC) crackdown on celebrities who promoted cryptocurrencies.

Related: Crypto and decentralization could influence voters in 2022 US midterm elections: Report

He also mentioned the collapse of the Terra ecosystem and how the industry “should have self regulated” beforehand by being more explicit about what an algorithmic stablecoin is.

“Lots of people knew this, the code was open source, we all knew what was happening and still we allowed it to get to $40 billion without a lot of without a lot of naysayers.”

Mónica thinks people were “lulled” into a thought pattern of “things only go up and things only go right” adding that now, "we're paying for it." 

Anchorage provides infrastructure for institutions to enable digital asset custody, exchange, staking and other Web3-related services, it was the first crypto firm in the U.S. to receive a national crypto bank charter in January 2021.

Blockchain gaining adoption in more than just DeFi: Report

Coinbase and 17 Other Crypto Firms Launch ‘Travel Rule Universal Solution Technology’

Coinbase and 17 Other Crypto Firms Launch ‘Travel Rule Universal Solution Technology’On Wednesday, the publicly-listed cryptocurrency firm Coinbase announced the launch of a collaborative effort called TRUST, which stands for “Travel Rule Universal Solution Technology.” The plan is described as an “industry-driven solution” developed to comply with the Financial Action Task Force (FATF) Travel Rule. There are currently 18 crypto firms that have joined TRUST so […]

Blockchain gaining adoption in more than just DeFi: Report

Kraken Ventures Raises $65 Million to Invest in Web3, Defi, Blockchain Startups and Protocols

Kraken Ventures Raises  Million to Invest in Web3, Defi, Blockchain Startups and ProtocolsThe independent investment fund led by Kraken alumni that’s focused on early-stage companies and protocols, Kraken Ventures, announced the successful closing of its first fund at $65 million. Presently, the fund holds positions in platforms like Hashflow, Pstake, Acala, Blockdaemon, Anchorage, and Messari. Kraken Ventures Reveals $65 Million Fund I LP There’s been an enormous […]

Blockchain gaining adoption in more than just DeFi: Report

Blockchain Industry to Surpass $67 Billion by 2027: Fintech Report Names 2021’s Most Influential Blockchain Companies

Blockchain Industry to Surpass  Billion by 2027: Fintech Report Names 2021’s Most Influential Blockchain CompaniesFinancial technology (fintech) has exploded during the last two years and cryptocurrency and blockchain firms have bolstered the billion-dollar industry. A recently published study by Utility Bidder indicates that the industry is predicted to surpass $382 billion by 2027. Moreover, fintech firms that are blockchain-specific are projected to be worth over $67.4 billion by 2027. […]

Blockchain gaining adoption in more than just DeFi: Report

Digital bank Anchorage offers Ethereum-backed loans to institutions

Institutional investors can get USD on credit without liquidating their ETH.

Crypto custody bank Anchorage Digital is expanding its services into crypto-backed loans for institutional investors.

Clients at Anchorage can now access a line of USD credit backed by Ethereum through its partnership with U.S. commercial bank BankProv.

Anchorage Financing will introduce a simple way for investors to put their Ethereum holdings to work, enabling them to access USD to meet their needs without liquidating their holdings according to the announcement. The crypto custodian also offers staking services for additional yields on Ethereum

The digital asset bank holds on to the ETH, using it as collateral should a client be unable to repay the dollar loan. Clients with large ETH holdings will be able to access a larger line of credit. Anchorage already provides Bitcoin-backed loans through other capital providers.

Ethereum-backed loans may be under collateralized if the borrower passes appropriate risk due diligence checks according to Anchorage co-founder Diogo Mónica.

Dave Mansfield, CEO of BankProv, said that Anchorage’s collateral management tech is “world-class”, adding that it is a trusted partner to the banking industry:

“We firmly believe in our mission and belief that the crypto market should be afforded the same access and rights to traditional financing tools as any other legal, well-capitalized and compliant business in America.”

Anchorage was the first crypto firm to receive a charter from the U.S. national bank regulator in January 2021. BankProv is the tenth oldest bank in America, operating for over 200 years as The Provident Bank before a rebrand in 2020.

In late February, Anchorage raised $80 million in a Series C funding round led by GIC, Singapore’s sovereign wealth fund, with participation from Andreessen Horowitz, and Blockchain Capital. The funding helped the custodian to assist institutions by bringing crypto to their users and diversifying their corporate treasuries.

In late March, Anchorage teamed up with cryptocurrency trading platform Prometheum to launch a fully regulated alternative trading system, or ATS, tailed specifically for professional crypto investors.

Blockchain gaining adoption in more than just DeFi: Report

Payment Giant Visa Integrates USDC Stablecoin Support for Settlement

Payment Giant Visa Integrates USDC Stablecoin Support for SettlementOn Monday, the American multinational financial services corporation Visa announced that digital currency payments have arrived on Visa’s settlement platform. The payment giant revealed that the company will leverage USD coin (USDC), the regulated token built on top of the Ethereum network. A lot Has Changed Since Dee Hock founded Visa Visa has announced cryptocurrency […]

Blockchain gaining adoption in more than just DeFi: Report