GSR Secures MPI License for Crypto Liquidity in Singapore

GSR Markets, a cryptocurrency trading firm and liquidity provider, has obtained a full Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This license allows GSR to conduct various payment services and surpass volume limits that are typically imposed on payment firms. GSR is the first company of its kind to receive this license in Singapore. With the MPI license, GSR can now offer its over-the-counter (OTC) spot and market-making services under the supervision of Singapore’s central bank.

Founded in the United States in 2013, GSR facilitates OTC crypto trading, derivatives, market making, and venture capital investments. It also holds Money Service Business licenses in multiple states in the U.S. Singapore, known for its supportive regulatory environment for blockchain-based technologies, has attracted many cryptocurrency companies aiming to establish themselves as leaders in the region. Acquiring the MPI license allows these companies to provide their services within the country.

In 2023, Crypto.com, Coinbase, and Ripple were among the first crypto companies to receive formal approval for their MPI licenses in Singapore. Crypto.com obtained its license in June, while Ripple and Coinbase received theirs in October. In 2024, OKX, a crypto exchange, and BitGo, a crypto custodian, also received in-principle approvals for the MPI license in Singapore.

While Singapore encourages crypto innovation, it is also taking steps to regulate retail speculation and expand its financial laws. MAS recently introduced measures to discourage retail investors from engaging in price speculation in cryptocurrency investments. The central bank published guidelines advising DPT service providers on how to discourage retail clients from speculating. MAS expanded the Payment Services Act to include custodial services for digital payment tokens, facilitating token transfers, exchange services, and cross-border fund transfers.

By granting the MPI license to GSR and other crypto companies, Singapore is solidifying its position as a digital asset hub and enabling financial institutions to explore blockchain technologies. As the cryptocurrency industry continues to evolve, regulatory measures will play a crucial role in maintaining investor protection and fostering responsible financial practices.

Leave a Reply