Blockchain infrastructure platform Paxos has received in-principle approval from the Monetary Authority of Singapore (MAS) to operate a digital payments token service.
Paxos announced the approval in a news release Thursday (March 10), saying the license makes it one of the first blockchain services providers “to meet the highest standard of regulation in both New York and Singapore.”
The approval was granted under Singapore’s Payments Services Act, which is designed to serve as a framework to help financial services provider expand into the digital asset space. Paxos said it can now offer digital asset and blockchain products and services to customers in Singapore and help the company’s partners expand their services in Asia.
Company CEO and Co-founder Rich Teo said Paxos been pursuing regulatory oversight since it launched in Singapore in 2012.
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“We believe it’s the only way for consumers and financial institutions alike to truly experience the benefits of the blockchain and digital assets,” he said. “We’re excited to have MAS as our regulator, and with their oversight, we’ll be able to safely accelerate consumer adoption of digital assets globally by powering regulated solutions for the world’s biggest enterprises.”
In addition to the approval by MAS, Paxos said it secured the first limited purpose Trust charter for digital assets from the New York Department of Financial Services in 2015.
Read more: Singapore Puts NFT Regulation on Hold
Last month, the MAS announced it will not regulate the thriving non-fungible token (NFT) market, which was $25 billion in sales in 2021 compared to $95 million in sales in 2020.
While this rise has garnered attention from regulators around the globe who want to monitor the burgeoning industry, Singapore will not be among them, with MAS Senior Minister Tharman Shanmugaratnam saying the central bank and lawmakers will stay on the sidelines for now.
“The MAS does not and cannot possibly regulate all things or products that people choose to invest their money in,” he said, adding that imposing regulations would involve considering the risks and rights of NFT owners in a still-nascent industry.
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