GSR Markets, a cryptocurrency trading firm and liquidity provider, has received its full major payment institution (MPI) license from the Monetary Authority of Singapore (MAS). The license was secured on April 4, following an in-principle approval in October 2023. GSR Singapore CEO Xin Song stated that GSR is the first company of its kind to receive the MPI license in Singapore.
Having an MPI license allows companies in Singapore to conduct multiple payment services and exceed volume limitations. For example, they can surpass the $2.2 million volume limit for a payment service and the $4.4 million monthly limit for two or more payment services. In GSR’s case, the license enables them to provide over-the-counter (OTC) spot and market-making services under the supervision of Singapore’s central bank.
GSR, founded in the United States in 2013, specializes in OTC crypto trading, derivatives, market making, and venture capital investments. The company also holds money service business licenses in multiple U.S. states.
Singapore’s regulatory efforts aim to position the country as a digital asset hub by allowing financial institutions to explore blockchain-based technologies. Consequently, many crypto companies have sought to obtain the MPI license to offer their services in Singapore.
In 2023, Crypto.com, Coinbase, and Ripple received formal approval for their MPI licenses in Singapore. Crypto.com obtained its license in June, while Ripple and Coinbase received official approval in October.
In 2024, crypto exchange OKX and crypto custodian BitGo received in-principle approvals for the MPI license in Singapore. BitGo received the initial approval in January, while OKX received its initial approval in March.
While Singapore supports crypto innovation, it is cracking down on retail speculation and expanding the scope of its laws. MAS has implemented measures to discourage retail investors from speculating in crypto investments. Additionally, the Payment Services Act has been expanded to include custodial services for digital payment tokens, facilitating token transfers and exchanges, and cross-border fund transfers.