Stepping into the world of cryptocurrency in Singapore has never been easier in this modern age.
From a time when crypto tokens were a niche, underground asset to its role now as a mainstay, future-proof investment, the growth that this asset class has undergone is truly unlike any other. This is especially true in Singapore, where a good chunk of the population holds or has dabbled in crypto in one way or another.
That being said, the crypto scene isn’t entirely free from its inherent risks. All around the world, and across the years, there have been countless privacy breaches, data theft, and cybersecurity attacks that have compromised crypto platforms in varying severities.
As such, it’s important to be very thorough in selecting the right crypto platforms that can give you the confidence to execute each transaction with guaranteed success. And one vital factor to consider in this regard is whether the crypto platform you’re using is properly licensed by the government or not.
If you want to learn the role of licensed crypto platforms, then read on. This article will help provide you with insights on how licensed crypto platforms in Singapore’s digital asset market change the world of finance in Singapore’s digital asset market.
In Singapore, there’s a single authority figure when it comes to regulating finances, and that’s the Monetary Authority of Singapore, or MAS for short. This institution is the central bank of Singapore, and it conducts monetary policy that serves to propel sustainable growth of the national economy.
The MAS is the official regulator of digital payment token service providers, such as cryptocurrency exchanges and other crypto-related businesses.
To secure a license, these platforms must comply with regulatory requirements set by the Payment Services Act 2019. This act essentially requires crypto businesses to comply with areas such as anti-money laundering, customer due diligence, and risk management, among others.
When all these steps have been conducted and approved by the regulator, then the crypto platform in question can become licensed. As of the moment, there are over 30+ crypto platforms in Singapore, such as Independent Reserve Singapore, that have been vetted and approved by the MAS to become licensed.
The road doesn’t end at just receiving the license, though. The crypto platform in question must also continue to uphold its commitment to operating responsibly within the country’s financial ecosystem. If it fails to do so, the MAS have the authority to strip back the privileges of being labelled as a licensed exchange platform.
There are many reasons why picking licensed crypto exchanges is often deemed the superior option in putting oneself in a reliable trading environment. These are some of these reasons in greater detail:
Licensed crypto exchanges offer enhanced security to their user base. With the approval of MAS—the largest authority figure in the finance world in Singapore—there’s little reason to doubt the authenticity and reliability of the crypto platform licensed under their name.
MAS don’t just approve any crypto exchange; even popular global sites have to undergo this process if they want to operate in Singapore legally. They created a rigid set of standards and frameworks that cater to consumer safety. For instance, they ensure that the systems within the exchange platforms protect against unauthorised access, fraud, and cyber attacks.
On top of that, many crypto exchanges also go above and beyond in strengthening their defence mechanisms against online threats. Picking a licensed exchange with a good security design can help give you peace of mind knowing that your personal details and funds are in good hands.
Another reason why crypto exchanges with licenses are ideal is that they offer enhanced transparency.