Upbit - South Korea Secures Regulatory License in Singapore
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Upbit - South Korea Secures Regulatory License in Singapore

9th Jan, 2024

On January 8, Upbit, a major cryptocurrency exchange in South Korea, officially announced that its local entity, Upbit Singapore, has successfully obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This significant development, as detailed on Upbit's official website, signifies Upbit Singapore's intentions to broaden its service offerings within the country. Joining the ranks of 15 esteemed institutions holding MPI status, including Ripple, Blockchain.com, Paxos, Coinbase, and Revolut, Upbit Singapore aims to play a pivotal role in the evolving financial landscape.

The initial in-principal approval from MAS was disclosed in October 2023, despite Upbit Singapore's operational presence in Singapore dating back to 2018. At that time, Upbit Singapore's Chief Operating Officer, Raks Sondhi, shared with Cointelegraph the company's strategic focus on "the institutional segment and infrastructure projects" within the Singaporean market.

With the MPI license now secured, Upbit Singapore gains the authority to offer both cryptocurrency and fiat-related services to Singaporean users. Notably, licensed institutions are exempted from single transaction limits of 3 million Singaporean dollars ($2.2 million) and monthly limits of 6 million Singaporean dollars ($4.4 million). These regulatory adjustments in October 2023 reflect broader measures by MAS aimed at digital payment token service providers to mitigate speculation in cryptocurrency investments. Such measures include prohibiting financing, margin, or leveraged transactions by service providers, along with discouraging incentives for crypto trading. Furthermore, customers are prohibited from using credit cards for crypto purchases, and their crypto holdings are not considered as part of their net worth by banking institutions.

Author

Felix @mecnix





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