Crypto exchange Independent Reserve has revealed that it has received approval for a Major Payment Institute License in Singapore. In achieving this, it has become the first Australian crypto exchange to be licensed by the Monetary Authority of Singapore (MAS) under the Payments Services Act (PSA) allowing it to operate as a Digital Payment Token (DPT) service provider.
A statement from the company expressed the possible impact of the licensing on its growth as it will accelerate its growth within the island country.
Under the Singapore licensing framework, the license applicants are subject to examination by the MAS as it looks into the policies and procedures regarding transaction screening, protection mechanisms and compliance structures. It also ensures the service provider has the appropriate infrastructure. Therefore, the licensing of the Independent Reserve shows how compliant the company is towards consumer protection and other provisions.
“A well-regulated environment will benefit both investors and crypto industry stakeholders. With tailor-made rules for the crypto industry, Singapore currently has the clearest and most detailed licensing requirements of any jurisdiction in Asia.” Adrian Przelozny, CEO of Independent Reserve.
The licensing from the highest financial regulator in Singapore allows for further international expansion plans and ability to reach other countries. It also remains a major crypto exchange in Australia alongside others such as Coinspot and BTC markets.
What’s the impact on the Australian crypto landscape?
An Australian cryptocurrency exchange getting licensed in another country is big news. If the country is a leading economy like Singapore, then it is even more impactful.
Australia has been making inroads with crypto adoption with the ASX to list the first Australian cryptocurrency ETF and Senator Braggs recent comments to make Australia a crypto hub. Digital currencies are accepted in the country as they are recognised as assets, hence subject to taxes. However, there is more to be done to clarify what entails digital currencies. While there have been rumours before of a changing crypto regulation framework in Australia, it is yet to pass.
With the Independent Reserve licensing in Singapore, the Australian government will likely speed up new regulations. This will offer more crypto-related companies the chance to grow and even become global brands. It will also improve Australian-Singapore relations, as they are already working on various blockchain services between them.
The Independent Reserve license will also impact the crypto reputation of Australia. With the new license, it paints a reliable and robust picture to the international community that Australian crypto exchanges are not only compliant but well equipped to handle any additional volume. For the Australian crypto community, this license is one small step in the journey to make Australia a heavy-hitter in the crypto space.