Crypto exchange gains in-principle approval in Singapore

Australian exchange Independent Reserve is one of the first virtual asset service providers to receive in-principle approval in Singapore

The Monetary Authority of Singapore (MAS) yesterday granted an in-principle approval letter for a Major Payment Institution Licence to cryptocurrency exchange Independent Reserve, according to a press release yesterday.

This approval will enable Independent Reserve to operate as a regulated provider of Digital Payment Token Services under the Payment Services Act, making the exchange one of the first virtual asset service providers (VASPs) in Singapore to receive such a letter.

CEO of Independent Reserve, Adrian Przelozny, commented, “To be one of the first cryptocurrency exchanges to be notified by MAS of our in-principle licensing approval is a reflection of the robustness of the policies, procedures and risk management systems that we have put in place to guide our day-to-day operations. It provides certainty for us as industry participants and security for our customers, knowing that their chosen platform has passed the scrutiny of a world-class regulator.”

Independent Reserve was founded in Australia in 2013 and provides a cryptocurrency order book exchange and OTC trading desk. Its features include API integration, a tax estimator and an AutoTrader for implementing automated crypto trading strategies. The exchange now has more than 200,000 customers across Australia, New Zealand and Singapore.

Since 2019, Independent Reserve has been expanding internationally and Singapore was the first place the exchange set up overseas operations. MAS’ local regulatory framework meant Independent Reserve could confidently establish crypto exchange and OTC trading desk services in the country to serve both people and institutions.

Przelozny added, “The granting of Digital Payment Token licences by MAS will continue to put Singapore in pole position as the leading financial hub in Asia. We are proud to be a positive and compliant contributor to this fast-growing industry.”

The MAS requires that VASPs implement suitable solicitation, risk management and due diligence in order to receive a licence. In particular, the authority is interested in applicants’ compliance structures and processes for anti-money laundering and combatting of terrorism financing, as well as their transaction screening, customer protection mechanisms and the robustness of their IT services.

Meanwhile, an MAS spokesperson told Decrypt yesterday that Binance is not yet licensed to operate in Singapore. Binance Asia Services is in a transitional period, during which it is temporarily exempt from needing a licence, while the authority reviews its application.