Ripple has obtained preliminary regulatory approval from Singapore’s financial watchdog, the Monetary Authority of Singapore (MAS), to provide token products and digital asset payments in the country. This approval allows Ripple’s subsidiary, Ripple Markets Asia Pacific, to enhance its on-demand liquidity capabilities. Users of Ripple’s platform can now transfer XRP internationally without relying on banks to act as intermediaries.
According to a statement released on June 22, 2023, the Monetary Authority of Singapore (MAS) granted Ripple an In-Principle Approval for its Major Payments Institution Licence application.
We’re honored to obtain In-Principle Approval of a Major Payments Institution License from the @MAS_sg – allowing us to offer regulated digital asset products and services, and scale customer use of #ODL. 🇸🇬
Learn more: https://t.co/8Ylc3lZSeg
— Ripple (@Ripple) June 22, 2023
Brad Garlinghouse, CEO of Ripple, praised Singapore’s regulator for its forward-thinking and innovative approach to cryptocurrency-related services. He expressed his belief that Singapore would play a significant role as a key gateway for Ripple’s operations in the Asia Pacific region.
Stu Alderoty, the chief legal officer of Ripple, stressed Singapore’s early leadership in establishing a transparent framework and licensing structure. He noted that this leadership would serve as an example for other governments interested in developing similar regulatory frameworks.
1/ @MAS_sg has built a workable framework that truly unites consumer protection, market integrity and innovation. They’ve also outlined a clear taxonomy to classify and regulate digital assets – making it possible for companies like Ripple to build and offer compliant products. https://t.co/KLYzWRrST0
— Stuart Alderoty (@s_alderoty) June 22, 2023
While Ripple’s compliance process in Singapore has been relatively smooth, the company has faced legal challenges in other jurisdictions, particularly from the U.S. Securities and Exchange Commission (SEC). Since December 2020, Ripple has been embroiled in a lawsuit alleging that it unlawfully promoted XRP as an unregistered security. This ongoing legal dispute has posed challenges for Ripple in the United States and has prevented its legal team from engaging in negotiations with the regulator.
Despite these challenges, Ripple continues to forge partnerships with various regional banks and financial organizations globally. On June 15, 2023, Ripple partnered with Banco de la República, Colombia’s central bank, to conduct a trial of central bank digital currencies (CBDCs) using the XRP Ledger.
Regarding U.S. SEC’s case against Ripple, John Deaton, a vocal advocate of Ripple’s legal position, has brought attention to the potential usefulness of the Safe Harbor concept in resolving the ongoing litigation. Deaton believes that had this legal provision been implemented, Ripple could have potentially saved millions of dollars in legal costs and facilitated the decentralization of XRP.
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