Upbit, a South Korean cryptocurrency exchange, announced that its Singapore entity has received In-Principal Approval for a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS).

This development paves the way for Upbit to continue offering regulated digital payment token services under the Payments Services Act (PSA), 2019, while it awaits full approval.

Upbit's In-Principal Approval: A Step Towards Regulated Services

Singapore is known for its robust regulatory framework when it comes to cryptocurrencies. These are typically categorized as digital payment tokens under the PSA. The country has emerged as a global cryptocurrency hub, followed by Switzerland and the United Arab Emirates, largely due to its government's collaborative efforts with financial institutions, businesses, and the public to foster innovation in the crypto sector.

Azman Hamid, the Chief Compliance Officer of Upbit Singapore, said: "We are incredibly proud to receive the IPA from MAS, a globally renowned financial regulator. This approval reflects our unwavering commitment to building trusted digital asset businesses in Singapore.”

“Through engaging collaboration with the regulator, businesses and communities, we will contribute to further establish Singapore as the leading hub for the next generation of financial businesses."

Upbit Singapore has been a prominent player in the cryptocurrency market since its establishment in 2018. In 2020, it received exempt status, relieving it from the obligation to hold a license under the PSA, a recognition of its commitment to complying with regulatory standards.

Singapore: The Preferred Destination for Crypto Companies in Southeast Asia

Finance Magnates reported earlier that Ripple, a San Francisco-based blockchain firm, has strengthened its presence in Southeast Asia by obtaining an MPI license from the MAS.

This development follows Coinbase and Sygnum, which also received MPI licenses in Singapore after initial in-principal approval. Singapore, with its clear cryptocurrency regulations, has become a favored destination for crypto companies seeking to expand their services across the lucrative Southeast Asian market.

Notable recipients of the MPI license in Singapore include Payoneer, Blockchain.com, and TerraPay, highlighting the country's appeal to cryptocurrency businesses.