Circle and Paxos earned official recognition in Singapore in order to issue stablecoins.

Key points: 

• Both Paxos and Circle received the monetary authority of Singapore's approval for their stablecoin licenses.
• Circle CEO and Co-founder Jeremy Allaire added the license to one of the world's leading financial hubs in order to aid with Circle's planned global and regional expansion.
• MAS announced plans to further enforce its tough stance on the crypto industry in 2022.

The Monetary Authority of Singapore released two consultation papers after receiving regulatory advice from the government that suggested lessening the difficulties associated with digital asset service providers. 

Both Paxos and Circle received the monetary authority of Singapore's approval for their stablecoin licenses. This was after both received the necessary license from the MAS.

Paxos received a license to offer digital payment token services. They also obtained a Major Payments Institution License from Circle. Both companies are licensed to issue cryptocurrencies and facilitate domestic and cross-border payments.

On November 2, 2018, Circle and Paxos announced that they received approval from the MAS for their respective projects. A week later, the MAS released two consultation papers about regulating digital payment token providers and stablecoin issuers under the PSA.

The PSA passed by the Singaporean Parliament in 2019 purports to regulate payment systems and allows MAS to oversee the conduct of payment service providers.

The Circle stablecoin, USDC, and Paxos’ USDP are both pegged to the U.S. dollar. Both of these issuers can now offer their stablecoins and other digital payment products in Singapore thanks to Circle and Paxos sharing a country code with each other.

Dante Disparte, Circle's Global Head of Public Policy and Circle Chief Strategy Officer, claims that the approval of Circle will allow greater potential for cryptocurrencies to drive economic growth in Singapore. This is due to the innovative-friendly regulatory framework that the country uses.

Circle CEO and Co-founder Jeremy Allaire added the license to one of the world's leading financial hubs in order to aid with Circle's planned global and regional expansion. His decision was instrumental to Circle's planned economic prosperity in every corner of the globe.

As CEO of Paxos Asia, Rich Teo was pleased with the approval of his company:

“We’re excited to have MAS as our regulator, and with their oversight, we’ll be able to safely accelerate consumer adoption of digital assets globally in partnership with the world’s biggest enterprises."

MAS rejected over 100 of over 170 applicants in late 2021 after more companies adopted Circle and Paxos’ systems. This was after the passing of stricter regulations.

MAS announced plans to further enforce its tough stance on the crypto industry in 2022. After shutting down Three Arrows Capital, a Singapore-based company that went bankrupt, MAS pushed forward with its plan. Sopnendu Mohanty, the chief fintech at MAS, commented that the industry would face a “brutal” and “unforgiving” punishment.

Singapore continues to be cautious when dealing with retail investors. In fact, the country's largest bank is the DBS, which only services accredited investors when dealing with cryptocurrencies. They're trying to change their perception as one of the more crypto-friendly countries.