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Singapore Grants License to Crypto Market Maker GSR, Signaling a Progressive Shift

This makes GSR one of the first market makers globally to receive such a license, placing them at the forefront of a regulated crypto market in Singapore.

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Singapore regulators has granted a Major Payment Institution (MPI) license to cryptocurrency market maker GSR Markets, according to Bloomberg on Thursday.

Headquartered in the United Kingdom, GSR is a leading player in the digital asset space with a decade of experience. They offer a suite of services encompassing OTC trading, derivatives, and market making. GSR is deeply entrenched within the crypto ecosystem, collaborating with token issuers, institutional investors, miners, and major trading venues.

The MPI license allows GSR Markets to conduct spot over-the-counter (OTC) trading and market-making services under the watchful eye of the Monetary Authority of Singapore (MAS). This regulatory oversight ensures GSR adheres to all necessary financial regulations, fostering transparency and trust within the crypto market.

Landmark decision

This move by Singapore sets a significant precedent for the global digital asset landscape. By granting a license to GSR, Singapore is sending a clear message: cryptocurrencies are here to stay, and responsible innovation within the sector will be encouraged. This is expected to pave the way for more crypto firms to seek regulatory approval in Singapore, potentially sparking a domino effect for other countries to follow suit.

The licensing of GSR aligns perfectly with Singapore's aspirations to become a leading hub for digital assets. The city-state is actively taking steps to attract crypto players and disruptors, positioning itself as a center for responsible blockchain innovation alongside established financial services.

Earlier this week, the MAS announced amendments to the Payments Services Act to help promote innovation and growth in the digital asset space in Singapore.

Singapore Strengthens Regulation of Cryptocurrencies
MAS said the amendments to the Payments Services Act will help to promote innovation and growth in the digital asset space in Singapore.

Well-timed move

The firm previously received a provisional MPI license in October 2023, and said back then that it was "committed to growing its presence in Singapore, leveraging it as a hub in APAC to invest in entrepreneurs across the region, and encouraging adoption of Web 3.0 technologies."

For GSR, securing this license comes at a pivotal time. The market maker has enjoyed significant growth in 2024, coinciding with a major rally in the crypto market. With a regulatory framework in place, GSR is well-positioned to capitalize on renewed investor demand for digital assets.