BitGo and Katyln among firms whose license has been rejected by MAS

MAS releases a list of crypto-based entities that are not exempted from Payment Services Regulations

Licenses of over 100 digital payment token services companies in Singapore were rejected by the Monetary Authority of Singapore (MAS) Japan’s financial publication The Nikkei reported earlier this week.

While MAS is eager to position the country as one of the emerging crypto hubs in the world, reports suggest that the regulator continues to recognise the risks that come with the growth of the industry.   

Data from the MAS reveals that out of the 170 that applied, 103 digital payment industry-based companies failed to meet the “stringent” regulatory requirements laid out by the local financial regulator.

Among the companies that failed to obtain clearance from the Singaporean authority is Dubai-based crypto exchange Bitxmi. CEO Sanjay Jain told The Nikkei that the company no longer saw Singapore as a viable location to expand to.

“We have an office there, but it’s just more or less — there’s one person for our accounting and legal issues,” Jain noted.  

Bitxmi is one of the many companies including BitGo Singapore, Revolut Technology Singapore, South Korean blockchain firm Klaytn that have appeared on MAS’s list of entities that are “no longer exempt pursuant to the Payment Services Regulations.”

The regulator also released another list with entities that were granted an exemption from holding a license as required by the Payment Services Act. Major industry players including includes Bitstamp Limited, Coinbase Singapore, Gemini Trust were featured on the list.

A spokesperson representing MAS explained that the authority is keen on creating an environment where the crypto industry can thrive and offer speedy cross border transactions while simultaneously preventing its abuse for money laundering, terror financing etc:

“Digital payment token service providers in Singapore have to comply with requirements to mitigate such risks, including the need to carry out proper customer due diligence, conduct regular account reviews, and monitor and report suspicious transactions.”