Ripple, the blockchain company, announced on Thursday that it has received preliminary regulatory approval to operate in Singapore. This news comes as a relief to the cryptocurrency industry, which is currently facing stricter regulations in the United States.
The Monetary Authority of Singapore, the country’s central bank, has granted Ripple an in-principle approval for a Major Payment Institution License. This license will allow Ripple to offer regulated digital payment token products and services, as well as expand the cross-border transfers of XRP, the cryptocurrency closely associated with the company.
XRP was trading at around 50 cents on Wednesday evening. Ripple, based in San Francisco, is well-known for XRP and its blockchain-based interbank messaging services. The company’s on-demand liquidity service utilizes XRP as a “bridge” between currencies, enabling faster cross-border transactions.
In addition to XRP, Ripple also operates RippleNet, a blockchain-based international messaging system that facilitates large fund transfers between banks and financial institutions. This system is similar to SWIFT, the global interbank messaging system.
It’s worth noting that the Securities and Exchange Commission (SEC) has charged Ripple, its co-founder Christian Larsen, and CEO Brad Garlinghouse with conducting an illegal securities offering. The SEC alleges that Ripple raised over $1.3 billion through the sale of XRP. However, Ripple denies these allegations, arguing that XRP is a currency and not a security subject to strict regulations.
Singapore serves as one of the major currency corridors for Ripple’s cross-border money transfers using XRP. The company’s regional Asia-Pacific headquarters is located in Singapore, where a majority of its global on-demand liquidity transactions flow.
Over the past year, Ripple has doubled its headcount in Singapore across various functions, including business development, compliance, and finance. The company plans to further increase its presence in Singapore.
The Monetary Authority of Singapore has not commented on this matter as of yet. However, the financial regulator has previously made headlines for criticizing Three Arrows Capital, a crypto hedge fund, for providing misleading information about its relocation to the British Virgin Islands.
Singapore has gained a reputation as a crypto-friendly jurisdiction and has attracted major companies, including DBS, Revolut, and Crypto.com. Ripple’s CEO, Brad Garlinghouse, is scheduled to speak at the Point Zero Forum in Zurich, Switzerland, to discuss digital assets and regulation.
In recent news, Ripple acquired Metaco, a crypto custody services firm, for $250 million. This acquisition aims to expand Ripple’s presence in the Swiss market and diversify the company’s operations away from the United States. Brad Garlinghouse mentioned that Ripple will have spent over $200 million in legal fees by the time its legal battle with the SEC concludes.
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