Singapore Grants Ripple Regulatory Approval to Operate, as US Tightens Policies
Ripple, the blockchain company behind XRP cryptocurrency, announced on Thursday that it has received in-principle approval from the Monetary Authority of Singapore, the country’s central bank, to operate in Singapore. This approval comes as a rare moment of positive news for the global cryptocurrency industry, which is currently facing tightening regulations in the United States.
Expanding Cross-Border Transfers and Digital Payment Token Services
With the Major Payment Institution Licence, Ripple can now offer regulated digital payment token products and services, enabling the expansion of cross-border transfers using XRP. Ripple’s primary customer base consists of banks and financial institutions.
Ripple’s On-Demand Liquidity Service and RippleNet
Ripple is widely recognized for its on-demand liquidity service that utilizes XRP as a bridge currency. This innovative service enables payment providers and banks to process cross-border transactions faster than traditional payment methods. Additionally, Ripple operates RippleNet, a blockchain-based international messaging system that facilitates large fund transfers between financial institutions, comparable to the global interbank messaging system SWIFT.
Ripple’s Legal Battle with the SEC
While Ripple continues to face legal challenges from the U.S. Securities and Exchange Commission (SEC), the company denies allegations of conducting an illegal securities offering. Ripple argues that XRP should be classified as a currency, not a security subject to stringent regulations.
Singapore’s Importance and Ripple’s Expansion Plans
Singapore plays a significant role as a major currency corridor for Ripple’s cross-border transactions using XRP. The country serves as Ripple’s regional Asia-Pacific headquarters, and the company has been actively expanding its presence in Singapore. Over the past year, Ripple has increased its headcount across various functions, including business development, compliance, and finance, and has plans for further growth in the region.
Singapore’s Fintech and Crypto-Friendly Reputation
Singapore has garnered a reputation for being a favorable jurisdiction for financial technology and cryptocurrencies. The country has welcomed numerous prominent companies, such as DBS, Revolut, and Crypto.com, to establish their operations there.
Looking Ahead and Ripple’s Global Strategy
Ripple’s CEO, Brad Garlinghouse, is scheduled to speak at the Point Zero Forum in Zurich, Switzerland. Where he will discuss innovation in digital assets and the importance of thoughtful regulation. As part of its global expansion efforts, Ripple recently acquired a Swiss crypto custody services firm. To diversify its presence beyond the United States. The company also highlighted the substantial legal fees incurred during its ongoing legal battle. The SEC, emphasizes its commitment to resolving the matter.
By receiving regulatory approval in Singapore, Ripple has taken a positive step forward, enabling the company to continue its operations and expand its services in the rapidly evolving cryptocurrency landscape.