The Monetary Authority of Singapore (MAS) has issued licences to four different companies to date, allowing them to offer digital payment token services in Singapore.
The first digital payment token licence was granted to Singapore-based fintech firm FOMO Pay in September, followed by Australian cryptocurrency exchange Independent Reserve and local bank DBS’ brokerage arm DBS Vickers in October, and most recently, Singapore-based crypto payment provider TripleA in November.
MAS has received 170 licence applications from DPT providers including global crypto exchanges such as Coinbase and Kraken. 30 applications were withdrawn after engagement with MAS and two have been rejected.
According to Louis Liu, founder and CEO of FOMO Pay, securing this licence wasn’t easy at all. It took almost two years as MAS sets a very high and strict standard when it comes to DPT service applications.
It closely reviews all applications and considers various factors, including the applicant’s understanding of risks relating to money laundering and financing of terrorism and the technology risks posed by their business model, as well as the adequacy of controls instituted to mitigate such risks, among others.
Although the licence approval process was challenging, he also felt that MAS has been very “collaborative and productive”, as they are open to discussion and acts like a partner or collaborator.
“Since the company was founded, we have been investing heavily to continuously improve our compliance, policies, procedures and risk management system. It’s years of effort to build a robust foundation, which helped us to obtain the licence. It’s a recognition for FOMO Pay and our excellent team, which made this happen,” he added.
