Ripple has received provisional regulatory approval from the Monetary Authority of Singapore (MAS) to provide digital asset payments and token products in the city-state.
Ripple officially announces the significant development comes at a time when XRP is engaged in an ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC). The approval granted to Ripple’s subsidiary, XRP Markets Asia Pacific, enables the expansion of its On-Demand Liquidity (ODL) platform, allowing customers to transfer XRP globally without the need for traditional banking intermediaries.
XRP CEO Brad Garlinghouse lauded the Singaporean regulator for its forward-thinking approach to cryptocurrency-related services, emphasizing that Singapore will serve as a prominent gateway for Ripple’s operations in the Asia Pacific region. Stuart Alderoty, Chief Legal Officer at XRP, commended the Central Bank of Singapore for creating a robust framework that encompasses consumer protection, market integrity, and innovation.
By providing clear guidelines for the classification and regulation of digital assets, Singapore has enabled compliant product offerings from crypto firms like XRP, unlike the challenges faced in the United States.
Ripple Faces Legal Challenges As MAS Enhances Fintech Regulations
MAS unveiled new guidelines for fintech firms offering digital money services in Singapore in the white paper titled Purpose Bound Money. This action intends to further enhance the regulatory framework and guarantee the industry’s responsible expansion.
Ripple continues to face legal challenges outside of Singapore, despite having attained regulatory compliance there. XRP’s legal team has been battling the U.S. Securities Exchange Commission since December 2020 on claims that it offered XRP as unregistered securities. According to Garlinghouse, a decision in this well-known case is anticipated in the upcoming months.
In order to maximize the development potential of RippleNet as a platform providing regulated settlement and liquidity services, Monica Long, president of XRP, emphasized the need of obtaining licenses in countries like Singapore. The Asia Pacific area, with its sizable market, has already seen a considerable surge in ODL traffic through Singapore, rising by more than five times year over year in 2022, she noted.
Singapore’s dedication to promoting innovation in the digital asset area is demonstrated by MAS’s in-principle approval of XRP, which creates a welcoming regulatory framework for businesses to operate and develop their services. This new accomplishment boosts Ripple’s standing in the cryptocurrency market and positions the business for greater development and acceptance while it works through its legal difficulties.