Ripple, the blockchain payments firm, has just announced that it has received in-principle approval of a Major Payment Institution Licence from the Monetary Authority of Singapore
Key Points
- Ripple has announced that it has been granted in-principle approval for a Major Payment Institution Licence from the Monetary Authority of Singapore.
- This license will enable Ripple to offer regulated digital payment token products and services, and also help in expanding the usage of XRP.
- This development comes at a time when Ripple is engaged in a legal battle with the SEC over a lawsuit.
In a much-needed boost for the cryptocurrency industry, Ripple, a blockchain company, announced on Thursday that it has been granted in-principle regulatory approval to operate in Singapore. The news comes at a time when the industry is facing increasing policy restrictions in the United States.
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
Ripple Got the Approval
According to Ripple, the Monetary Authority of Singapore, the country’s central bank, has granted the company a Major Payment Institution Licence. This license will enable Ripple to offer regulated digital payment token products and services, and expand the cross-border transfers of XRP, a cryptocurrency that the company is closely associated with, among its customers, which include banks and financial institutions.
This approval is a rare moment of good news for the cryptocurrency industry, which has been grappling with increasing regulatory scrutiny in many countries. The move by Singapore signals a more welcoming approach to digital currencies and may encourage other countries to follow suit.
This wednesday evening, XRP was seen trading at around 50 cents. Ripple, a fintech company based in San Francisco, is widely recognized for its XRP cryptocurrency and interbank messaging services using blockchain technology. Ripple’s on-demand liquidity service employs XRP as a “bridge” between currencies, enabling payment providers and banks to process cross-border transactions much faster than traditional payment methods.
In addition to this, Ripple also operates RippleNet, a blockchain-based international messaging system that facilitates massive transfers of funds between banks and other financial institutions. This system is similar to SWIFT, the global interbank messaging system. Through its innovative services, Ripple is revolutionizing the world of finance and paving the way for a more efficient and connected global economy.
Ripple Facing Some Charges
The Securities and Exchange Commission (SEC) has also recently made a move by charging Ripple, along with its co-founder Christian Larsen and CEO Brad Garlinghouse, with conducting an illegal securities offering. The company allegedly raised over $1.3 billion through sales of XRP.
Ripple, however, has denied these allegations and is arguing that XRP is a currency, not a security that would be subject to strict rules.Interestingly, Singapore plays a crucial role in Ripple’s operations. It serves as one of the largest currency corridors that Ripple uses to send money across borders using XRP. This was revealed in a recent press release by the company. With Ripple facing legal challenges, it remains to be seen how this will affect its operations in Singapore and other parts of the world.