Key Points
- GSR Markets, a cryptocurrency market maker, has received a Major Payment Institution license from Singapore’s Monetary Authority.
- The license permits GSR Markets to provide spot over-the-counter and market-making services in Singapore.
GSR Markets, a notable player in the crypto market making and liquidity providing sector, has successfully secured a Major Payment Institution license from the Monetary Authority of Singapore (MAS).
GSR Markets Joins Select Group
According to a recent Bloomberg report, GSR Markets’ Singapore subsidiary is one of the few entities to obtain a full MPI license from Singapore authorities. Presently, Paxos, Blockchain.com, Circle, and Coinbase Global Inc (NASDAQ: COIN) are among the 19 organizations that hold an MPI license in Singapore, offering Bitcoin or digital payment token services.
With the Digital Payment Token Service license, GSR is now permitted to buy and sell “digital payment tokens” and provide spot over-the-counter and market-making services in Singapore.
GSR Group CEO Jakob Palmstierna expressed his pride at receiving the MPI license from MAS, a regulator recognized for promoting sustainable non-inflationary economic growth and a sound, progressive financial center.
GSR had initially received in-principle approval for the MPI license in October of the previous year. Despite the challenges in meeting MAS compliance requirements, the company remained committed to obtaining full approval.
GSR views the full license as a stepping stone towards realizing its ambition of using its Singapore office as a springboard for expansion into the Asia-Pacific region. The company aims to establish a hub that will enable it to invest in entrepreneurs across the region while also promoting the use of Web3 technologies.
Cryptocurrency Interest Surges
Interest in market makers like GSR has surged due to the approximately fourfold increase in Bitcoin since the start of 2023. This has led to a resurgence in the crypto market and renewed investor interest in digital assets.
Typically, liquidity providers and market makers are not licensed entities because they do not deal with customers. However, Singapore recently expanded its licensing regime to include custodial services and cross-border money transactions. This move will allow MAS to enforce regulations related to the prevention of money laundering and the financing of terrorism.
Singapore is also facilitating the way financial institutions test blockchain technology. The city-state, already a significant financial hub, is vying with other major financial centers like Hong Kong and Japan to attract virtual asset companies.
Hong Fang, the President of OKX, previously noted that Singapore attracts forward thinkers, entrepreneurs, innovators, and a broader market of early tech adopters. His remarks were made after OKX was granted an MPI license from MAS.
