Upbit Singapore Gains Major Payment Institution License for Crypto Expansion

Upbit Singapore was officially established as a Major Payment Institution, according to a statement released on January 8 via the company’s official website. This significant advancement creates the conditions for Upbit Singapore to expand its service offering domestically. Upbit Singapore’s MPI status places it at the forefront of cryptocurrency and fiat-related services in the area, joining the ranks of 15 other prestigious organizations, including Ripple, Blockchain.com, Paxos, Coinbase, and Revolut.

The MAS granted Upbit Singapore in-principle clearance back in October 2023, which signaled the start of this revolutionary journey. Chief Operating Officer Raks Sondhi of the exchange, which has been operating in Singapore since 2018, described the company’s strategy focus as being on “the institutional segment and infrastructure projects” within the Singaporean market.

The Power of MPI License

The MPI license is very important because it allows companies like Upbit Singapore to provide locals with services connected to cryptocurrency and fiat money without having to worry about monthly thresholds or single transaction limitations. Licensed companies are granted permission to perform payment services with more freedom, free from the restrictions imposed by the former monthly ceilings of $6 million Singaporean dollars ($4.4 million) and transaction limits of $3 million Singaporean dollars ($2.2 million) each transaction.

To reduce speculation in cryptocurrency investments, the MAS implemented strict regulations for digital payment token service providers in November 2023. By outlawing leveraged, margin, and financing transactions, the regulatory framework promotes ethical behavior in the sector. Furthermore, consumers are prohibited from purchasing cryptocurrency using credit cards, and banks do not include cryptocurrency holdings against a customer’s net worth.

With the MPI license obtained, Upbit Singapore has taken a calculated step towards a new and expanded chapter of cryptocurrency services in Singapore. Aligned with respected partners, the exchange operates under a regulatory environment characterized by accountability and caution. As Upbit Singapore aims to offer a wider range of services, the MPI license is evidence of the increasing acceptance and acknowledgment of cryptocurrencies in mainstream financial ecosystems.