Crypto liquidity provider GSR receives regulatory approval in Singapore

October 2, 2023 Coin Telegraph

The license allows GSR to provide crypto and fiat-related services to Singaporean residents and entities.

Cryptocurrency trading firm and liquidity provider GSR's Singaporean subsidiary, GSR Markets Pte. Ltd, has received an in-principal approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution (MPI) license.

"GSR is proud to have met the rigorous admission requirements set by MAS and will be working diligently towards a full license," the firm said in its Oct. 2 announcement. GSR plans to use its Singaporean subsidiary as a hub for expanding into the Asia-Pacific region.

An MPI license allows institutions to provide crypto and fiat-related services to residents of Singapore. Licensed firms are authorized to conduct payment services without being subjected to single transaction limits of 3 million Singaporean Dollars ($2.2 million) and monthly limits of 6 million Singaporean Dollars ($4.4 million). "MAS has led the way providing a clear framework for digital asset utility," said Xin Song, COO of GSR.

Founded in 2013 in New Jersey, the firm conducts over-the-counter crypto trading alongside derivatives, market making, and venture capital investments. The firm holds Money Service Business licenses across several states.

On Oct. 1, Cointelegraph reported that crypto exchange Coinbase obtained a full MPI license from the MAS. The regulatory approval allows Coinbase to offer digital token services to both individuals and institutions in Singapore.

According to data provided by Coinbase, 25% of surveyed Singaporeans consider crypto to be the future of finance, with 32% of respondents claiming that they are either current or past owners of crypto. The city-state is home to over Web3 700 companies.

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Coinbase crypto exchange obtains payment license in Singapore

October 2, 2023 Coin Telegraph

Coin Telegraph

The new MPI license comes one year after Coinbase’s initial in-principle approval in Singapore, enabling it to expand digital payment token services.

The United States-based cryptocurrency exchange Coinbase is expanding operations in Singapore by securing major regulatory approval from the country’s central bank.

Coinbase has obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore, the firm announced on Oct. 1. The new license, coming one year after Coinbase’s initial in-principle approval in Singapore, enables the company to expand its digital payment token services to individuals and institutions in the country.

According to MAS, MPI-licensed firms are authorized to conduct payment services without being subjected to transaction limits of 3 million Singapore dollars ($2.2 million) for any payment service. The approved companies are also free from the 6 million SGD ($4.4 million) limit of monthly transactions for two or more payment services, other than e-money account issuance and money-changing services.

The newly acquired license is “not only a validation of Coinbase's operations” but also represents a responsibility to the growing crypto and Web3 community in Singapore, the firm said in the announcement.

Coinbase has been actively developing products and services designed specifically for Singapore, launching PayNow and FAST bank transfers in March 2023. Coinbase has also integrated Singapore’s digital identity service SingPass in order to simplify the onboarding process. Additionally, Coinbase has been collaborating with major local blockchain firms, including Nansen.ai, Blockdaemon, and Infura, to expand its products like Base blockchain and wallet-as-a-service.

“From our initial involvement in the Lion City, we've identified Singapore as a vital market for Coinbase,” the exchange noted, stressing that more than 30% of Singaporeans were found to be current or past owners of crypto in its recent survey. The announcement added:

“Singapore has naturally become a significant location for this industry. Moreover, Singapore is home to over 700 Web3 companies, making it a pivotal market for the growth of the crypto and Web3 economy.”

Coinbase did not immediately respond to Cointelegraph’s request for comment.

As previously reported, major global cryptocurrency firms have been increasingly securing Singapore’s MPI license recently. Crypto data provider and wallet Blockchain.com became the 12th firm to receive the license in August 2023. The USDC (USDC) stablecoin issuer Circle received the MPI license in June 2023, following crypto exchange Crypto.com.

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3AC Co-Founder Zhu Su Arrested at Airport, Receives Four Month Jail Sentence for Contempt of Court: Report

September 29, 2023 The Daily Hodl

Tether reportedly shuts USDT redemption for some Singapore customer groups

September 25, 2023 Coin Telegraph

Coin Telegraph

Tether in its email said they found Cake DeFi to be controlled by “another corporation that resides in Singapore,” and thus they won’t be allowed to redeem USDT.

Tether, the largest stablecoin issuer behind USDT, has reportedly changed its terms of services (ToS) in Singapore. An email shared by the decentralized finance protocol Cake CEO on Sept. 25 shows the changes to Tether's ToS prohibiting certain customer base from redeeming USDT.

The CEO of Cake Group Dr. Julian Hosp took to social media platform X (formerly Twitter) to share the email received from Tether informing that they cannot redeem USDT for USD due to the changes in the ToS of the stablecoin issuer just one day ago.

Ok, so, I won't be able to tell you if redeeming $USDT into $USD is actually possible, due to being in #Singapore, which was a recent change to the @Tether_to ToS from one day to another. Interesting. pic.twitter.com/1YzNqkbjMO
— Dr. Julian Hosp (@julianhosp) September 25, 2023

Hosp in his X post noted that based on the recent mail, they are not sure whether they would be able to redeem USDT into USD due to being in Singapore.

The key changes to the ToS of Tether include restricting its onboarding standards and “corporates controlled by another entity, directors, and shareholders residing in Singapore are no longer permitted to be Tether customers."

The term “controlled by another entity” confused many in the crypto community including Cake DeFi which was informed that they “are controlled by another corporation in Singapore. Accordingly, you will not be permitted to be issued or redeemed from the platform."

Many users on X pointed out that the recent change in ToS by Tether comes amid one of the largest crypto money laundering scandals in Singapore where the assets seized from the bust have swelled to over $2 billion.

1 month after the massive money laundering bust in Singapore, Tether restricts customers in Singapore

Crypto firms have flocked to SG recently for friendlier regs. This could be a huge blow

W/ the HKG crackdown, the gates to Asia are closing for the crypto cartel https://t.co/yVu79bJHgb
— Rho Rider (@RhoRider) September 25, 2023

Another user noted that the changes in the USDT redemption term could be a Cake DeFi-specific problem noting that the DeFi protocol is flagged as enhanced due diligence (EDD) and thus it could be a partnership issue between the two firms.

This could be a @cakedefi issue specifically. It’s flagged as EDD - enhanced DD. I’m not suggesting anything is wrong at Cake, just that it could be specific tether / cake relationship issues.
— Hayden (@hayden_9776) September 25, 2023

Cointelegraph reached out to Tether to confirm the email shared by the Cake group COO and enquired about changes in its ToS but has not yet received a response.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

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3AC Founders Kyle Davies and Zhu Su Slapped With Nine-Year Ban by Singapore Regulator a Month After Dubai Fines

September 14, 2023 The Daily Hodl

Grab, Uber’s Southeast Asian rival, debuts Web3 services with Circle

September 14, 2023 Coin Telegraph

Asia

Grab, Southeast Asia’s Uber-like super app, is working with the USDC issuer Circle to enable Web3 services for its 187 million users.

Grab, Southeast Asia’s super app and the biggest technology startup in the region, is piloting Web3 services in Singapore in collaboration with the USD Coin (USDC) issuer Circle.

Announcing the partnership on Sept. 14, Circle said the new Web3 services are available for Singapore-based Grab users through the “Grab Web3 Wallet.”

The new services are enabled through integration of Circle’s new Web 3 Services platform in the Grab app, which is designed to help traditional firms to adopt stablecoins, digital assets and smart contracts.

As part of the pilot, eligible Grab app users are able to set up a blockchain-enabled wallet, earn rewards and collectibles as well as use nonfungible token (NFT) vouchers.

The Grab Web3 Wallet already offers SG Pitstop Pack NFT vouchers at popular stores in Singapore during the upcoming F1 Singapore Grand Prix, the announcement notes.

The news about Grab’s Web3 services first surfaced last week, with industry observers spotlighting a Web3 tab with an integrated cryptocurrency wallet on Grab app’s interface on Sept. 7.

*Initial social media reports on Grab’s Web3 services. Source: X*

“Last week X was abuzz wondering about the newly launched Web3 Wallet in the Grab Singapore app. Today, Circle announced its partnership with Grab to power its new Web3 Wallet experience,” Circle co-founder and CEO Jeremy Allaire wrote on X (formerly Twitter).

Allaire noted that it’s “incredibly promising” to see major Web2 companies adopting blockchain technology, adding:

“Piloting our technology with Grab’s customers brings us closer to realizing the full potential of responsible digital assets innovation.”

Founded in 2012 as MyTeksi, Grab app is a multinational technology company headquartered in Singapore. The company operates a super-app for ride-hailing, food delivery and digital payments services on smartphones in countries like Singapore, Malaysia, Cambodia, Indonesia, Myanmar, the Philippines, Thailand and Vietnam. Grap app reportedly serves more than 187 million users in 330 cities across Southeast Asia.

Circle’s partnership with Grab Singapore builds on the company’s ongoing expansion in the country. In June 2023, Circle obtained a Major Payment Institution license from the Monetary Authority of Singapore after officially opening its office in May. Previously, Circle collaborated with Tribe, Singapore’s government-supported blockchain ecosystem builder, to support local Web3 development.

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Singapore’s central bank slugs Three Arrows founders with 9-year ban

September 14, 2023 Coin Telegraph

3AC

Three Arrows Capital founders Kyle Davies and Zhu Su are barred from regulated activities or acting as top execs at any financial firm in Singapore.

Singapore's central bank has issued nine-year prohibition orders to Kyle Davies and Zhu Su over alleged violations of the country's securities laws at their co-founded crypto hedge fund Three Arrows Capital (3AC).

In a Sept. 14 statement, the Monetary Authority of Singapore (MAS) said Su and Davies will be banned from regulated activities during the prohibition period that started Sept. 13.

They also won't be permitted to manage, act as a director, or be a substantial shareholder of any capital market services business in Singapore.

In its decision to bar the pair, MAS said it found further securities law violations when it undertook further investigations into the bankrupt 3AC and its co-founders.

MAS claimed Su and Davies failed to notify the central bank that 3AC employed a new business representative, gave false information to the regulator, and failed to have an appropriate risk management framework in place.

Loo Siew Yee, MAS' assistant managing director of policy, payments and financial crime said “MAS takes a serious view of Mr Zhu’s and Mr Davies’ flagrant disregard of MAS’ regulatory requirements and dereliction of their directors’ duties."

"MAS will take action to weed out senior managers who commit such misconduct” she added.

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US ‘the only country’ crypto startups should avoid, says Ripple CEO

September 13, 2023 Coin Telegraph

Brad Garlinghouse

Brad Garlinghouse said Singapore, the U.K., the UAE and Switzerland are jurisdictions with “smart” crypto policies he thinks the U.S. should adopt.

The United States is one of — if not the worst — place to launch a cryptocurrency startup in the world right now, according to Ripple CEO Brad Garlinghouse whose firm is in a legal battle with the U.S. securities regulator.

“The only country I would not encourage you to start a company right now is in the U.S.,” Garlinghouse said on a Sept. 12 panel at Token 2049 in Singapore.

The Ripple boss wants the U.S. to take note from the likes of Singapore, the United Kingdom, the United Arab Emirates and Switzerland by enacting policies that encourage crypto innovation while protecting consumers.

*Bloomberg’s Annabelle Droulers (left) moderating a panel with Garlinghouse (center-left), OKX’s Hong Fang (center-right) and BitGo’s Mike Belshe (right). Source: Andrew Fenton/Cointelegraph*

Garlinghouse pointed the blame at the Securities and Exchange Commission claiming its engaging in a political war with the industry with its lawsuits.

That lawsuit strategy isn’t working, said Garlinghouse, and claimed Ripple and Grayscale’s court wins over the SEC may suggest the court’s mood is turning in the industry’s favor.

“I think you're seeing the momentum shift. I think that it used to be that a lot of judges were like: ‘Well the SEC is always right,’ and they weren't fighting that [but] I think you're starting to see the pattern change.”

While the outcomes in Ripple and Grayscale aren’t legally binding, Garlinghouse said the results provide more clarity to crypto exchanges and custody providers operating in the U.S. — at least for now.

OKX president Hong Fang acknowledged the politics at play but stressed for crypto firms to focus on what they can control.

“We can only control what we can control, which is to build the right product and to focus on the technology and to support responsible regulation.”

Despite the U.S. being a big market for Ripple, Garlinghouse said it’s expanding services to countries he claims are more progressive and better understand the potential benefits of blockchain technology.

We might not ready for a spot Bitcoin ETF

During the panel, Fang said he thinks investors may not be ready for custody solutions built around a prospective spot Bitcoin (BTC) exchange-traded fund because much of the new blockchain-based infrastructure hasn’t been battle tested by the masses.

“I think there's a huge implication on custody [...] The question I have on my mind is whether our industry is actually ready for it” he said.

Fang acknowledged a spot Bitcoin ETF will lead to more institutional inflows but isn’t convinced that investors can now stomach Bitcoin’s volatility and second guessed the readiness of continuing to build more applications on top of Bitcoin.

“We are actually creating something that is new, that we can build on top of, a new monetary system that hasn't come to fruition yet,” Fang said. “So I don't know whether we're ready for that yet from an industry infrastructure perspective.”

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Singapore regulatory sandbox lacks qualified crypto payment providers

September 8, 2023 Coin Telegraph

Coin Telegraph

The MAS has said that rising malware scam cases in Singapore have nothing to do with cryptocurrencies. On the contrary, it claimed, such scams are more prevalent in the fiat economy.

The Monetary Authority of Singapore (MAS) has said that no businesses have qualified to participate in the FinTech Regulatory Sandbox framework as cryptocurrency payment providers.

Responding to a letter criticizing the Singaporean government’s lack of public consultation and oversight on crypto adoption published in the Financial Times, MAS clarified that the country does not have a “crypto sandbox,” but rather a sandbox that supports a broad range of FinTech experimentation.

The letter criticised Singapore for “unwisely” allowing crypto companies access to Singapore’s FAST (Fast and Secure Transfers) interbank payment system, an electronic funds transfer system that enables customers of the participating entities to transfer Singapore Dollar funds from one entity to another in Singapore.

*Singapore’s FAST (Fast and Secure Transfers) overview. Source: fastpayments.worldbank.org*

However, the MAS clarified that all businesses with a valid bank account can access the FAST system, which includes crypto businesses, stating that “Payments through FAST are in fiat currencies, not cryptocurrencies.”

The regulator then stated that the rising malware scam cases in Singapore have got nothing to do with cryptocurrencies, claiming that on the contrary, such scams are more prevalent in the fiat economy:

“These scams entail fraudsters taking control of customers’ mobile devices and effecting unauthorized transfers through the banking system in fiat currencies.”

In its fight against money laundering, Singapore provides operational licenses to crypto businesses that can showcase robust Anti-Money Laundering (AML) controls.

“As these measures are progressively implemented from the end of this year onwards, Singapore will have one of the strictest regulatory regimes in the world governing retail access to cryptocurrencies.”

In this regard, the MAS recently consulted the public on a suite of regulatory measures to mitigate the risks posed by cryptocurrencies to retail customers.

Former MAS chair, Tharman Shanmugaratnam — who has historically considered crypto as risky investments — won Singapore’s presidential race.

The president-elect reportedly once called crypto assets “highly volatile” and “highly risky as investment products” in 2021 warnings to Singapore-based users in his role as MAS chair.

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Vauld gets permission for board restructuring from the court

August 25, 2023 Coin Telegraph

Coin Telegraph

Singapore-based crypto exchange has been ongoing bankruptcy proceedings since August 2022.

Vauld, a Singapore-based crypto exchange, that has been ongoing bankruptcy proceedings since August 2022, has said that it received permission from the court to restructure its board. The new top management will lead the company’s bailout process.

On Aug. 24, Vauld’s co-founder Darshan Bathija revealed on X (former Twitter), that the company got its scheme of arrangement passed in Singapore court. According to the plan, the current board will be replaced with a new CEO, a creditor representative, and a scheme manager.

The platform also resumed the know-your-customer (KYC) checks for existing customers, who now have to resubmit their verification documents. In August 2022, Indian law enforcement seized $46.4 million from the Indian branch of Vauld, Flipvolt Technologies, due to the allegations of money laundering.

Vauld froze the withdrawal option for their customers in July 2022, citing unfavorable market conditions and a two-week “bank run” costing $200 million worth of withdrawals. The company cited the losses relating to the declining prices of major cryptocurrencies and its exposure to the stablecoin UST, which collapsed in May 2022.

In August 2022, it was granted a three-month moratorium to develop a restructuring plan. The plan suggested an acquisition by a Swiss-headquartered crypto lender Nexo, but in January 2023 Nexo’s office was raided by law enforcement and the negotiations stopped.

The same month Vauld was given another period of creditor protection by a Singapore court, and in February it was extended. The company owes its creditors around $400 million, the majority of which is individual depositors' money.

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Singapore

We might not ready for a spot Bitcoin ETF

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