San Francisco based Ripple Labs has received preliminary regulatory approval from the Monetary Authority of Singapore (MAS) to operate and expand its digital asset products and services in the city-state. The approval in principle from the country’s central bank was granted to Ripple’s local subsidiary, Ripple Markets Asia Pacific, paving the way for Ripple to improve cross-border transfers of its companion cryptocurrency, XRP.
What a provisional license means for Ripple
Over the past year, Ripple has experienced significant growth in its Singapore business. The company reported that most of its global On-Demand Liquidity (ODL) transactions are channeled through the city-state, leading to a doubling of headcount at its Asia-Pacific headquarters.
In particular, Ripple’s ODL service, which uses XRP as an intermediary, is designed to promote efficient international transfers, aiming to provide a faster alternative to traditional payment mechanisms. RippleNet, another of the company’s services, uses blockchain technology for interbank messaging, enabling massive money transfers between financial institutions.
We are honored to have obtained approval in principle from a major payment institution license from the @MAS_sg – enabling us to offer regulated digital asset products and services and to scale their use by customers #ODL.
More information: https://t.co/8Ylc3lZSeg
— Ripple (@Ripple) June 22, 2023
Ripple CEO Brad Garlinghouse praised Singapore’s pragmatic approach to digital asset regulation, deeming the city-state a “prominent gateway” for Ripple’s business expansion in the Asia-Pacific region. The approval underscores Ripple’s commitment to engaging with regulators worldwide, Garlinghouse said in a press release.
The approval in principle comes amid Ripple’s ongoing legal battle with the US Securities Exchange Commission (SEC), which began in December 2020 and recently took a turn for the worse in light of the “Hinman documents”. The SEC is accusing Ripple of offering XRP as an unregistered security, a claim Ripple firmly denies.
Ripple’s legal officer Stu Alderoty praised Singapore’s clarity and foresight over the regulations through Twitter, suggesting that this could serve as guidance for other regulators worldwide. He added, “This in-principle regulatory approval from the MAS will enable us to better support our forward-looking customers looking to advance blockchain and crypto technologies.”
Singapore, once known for its progressive regulation of digital assets, could provide a promising avenue for crypto companies facing tougher regulations in other jurisdictions, particularly the United States.
Other major companies, including Revolut and Crypto.com, have also benefited from Singapore’s welcoming regulatory environment for fintech and crypto ventures. Although that climate may be changing, as evidenced by the city-state’s crypto moves.
All in all, Ripple’s move marks another strategic step in the company’s global expansion plan following its recent $250 million acquisition of Swiss crypto custody firm Metaco. Ripple certainly wants to capitalize on the potential offered by the Asian and European markets as it navigates an uncertain regulatory landscape in its home country.
Editor’s Note: This article was written by an nft now contributor in collaboration with OpenAI’s GPT-4.
