South Korean cryptocurrency exchange Upbit recently obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This marks a strategic milestone for Upbit in the cryptocurrency industry, enabling it to offer regulated digital payment token services in this dynamic Southeast Asian city-state.
Upbit’s Strategic Ascension
Since approval in principle in October of the previous year, Upbit had been awaiting this full regulatory approval. Singapore, renowned for its regulatory framework and forward-looking approach to the cryptocurrency industry, regulates digital payment tokens under the Payment Services Act (PSA) 2019. The clarity of this regulation has transformed Singapore into a global hub for cryptocurrencies, attracting major players in the crypto space.
With this license, Upbit is now in a position to expand its range of services. Alex Kim, founder and CEO of Upbit Singapore, emphasized the company’s ambition to become the nexus of institutional business by capitalizing on Singapore’s strong regulatory framework and its reputation as a leading financial center in Asia. Raks Sondhi, Upbit Singapore’s COO, mentioned the intention to increase the list of available digital assets, as well as liquidity and institutional service offerings, while maintaining a focus on customer protection.
Upbit in the Global Crypto Landscape
Upbit is no newcomer to the cryptocurrency business. Its parent company, Upbit APAC, also operates cryptocurrency trading platforms in Thailand and Indonesia. In South Korea, Upbit handles almost half of all cryptocurrency transactions on the local market, with a trading volume of $4.2 billion over the last 24 hours. Upbit is one of five fully licensed exchanges in South Korea, alongside Bithumb, Coinone, Korbit and Gopax.
Upbit’s acquisition of the MPI license in Singapore is more than just a regulatory formality. It’s a strategic move that aligns the company with its expansion plans. By standing alongside peers such as Coinbase and Crypto.com, who have also acquired the MPI license in Singapore, Upbit is demonstrating its commitment to regulatory compliance, contributing to the legitimacy and stability of the cryptocurrency ecosystem as a whole.
Conclusion
Upbit’s receipt of the MPI license in Singapore signifies not only regulatory approval, but also strategic positioning and preparation for further expansion of its offerings in the cryptocurrency landscape. This milestone is a significant example of how cryptocurrency companies are seeking to align themselves with advanced regulatory frameworks to navigate an ever-changing global market.
