Singapore permits DBS and Australian exchange Independent Reserve to operate crypto exchanges.

The Singapore Monetary Authority (MAS) recently awarded licenses to DBS Vickers (DBSV), DBS Bank’s brokerage arm, and Independent Reserve, an Australian cryptocurrency exchange, to provide digital payment token services in accordance with the Payment Services Act (PS Act).

MAS’s formal permission, which follows its earlier “in-principle approval” of both companies in August, authorizes DBSV and Independent Reserve to conduct cryptocurrency trading services in the country, making them among the first few organizations to acquire such a license. FOMO Pay, a Singapore-based fintech, was the first to acquire the license last month.

DBS stated in a statement that the license enables DBSV to directly assist institutional and corporate clients in investing in and trading digital assets via the DBS Digital Exchange (DDEx). “This achievement demonstrates our continued capacity to provide integrated solutions across the digital asset value chain, from deal origination to tokenization, listing, trading, and custody,” said Eng-Kwok Seat Moey, head of capital markets at DBS and chair of the DBS Digital Exchange. “We expect that DBSV’s license, together with recent additions to DDEx, such as round-the-clock operations since August, could boost DDEx’s volumes in the coming months, accelerating DBS’ digital asset ecosystem’s growth momentum.”

DBS aims to double the number of investors on the DDEx to 1,000 by December 2020 and to grow its base by 20% to 30% yearly for the next three years.
In the case of the Australian crypto exchange Independent Reserve, this is the first time a foreign business has been awarded a license in Singapore to conduct digital payment token services. Additionally, Independent Reserve was awarded licenses to perform account issuance, local and cross-border money transfer services.

“A well-regulated environment benefits both investors and stakeholders in the cryptocurrency industry,” Independent Reserve CEO Adrian Przelozny said in a statement. “With regulations tailored to the crypto business, Singapore now offers the most transparent and detailed licensing standards in Asia.” Independent Reserve was founded in Australia in 2013 and opened its first overseas office in Singapore in 2019 to provide crypto exchange and over-the-counter trading services.

Providers of digital token payment services — including cryptocurrency exchanges — must be regulated under Singapore’s PS Act 2019. According to the MAS, 170 license applications have been submitted by providers of digital payment token services. Exchanges such as Binance Singapore, Coinbase, and Gemini currently operate in Singapore under a transitory exemption. The exemption enables entities to continue providing services during the processing of their license applications.

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