Singapore: SBI Digital Markets Obtains License to Offer Digital Asset Services
SBI Digital Markets Pte Ltd has obtained a Capital Markets Services (CMS) license in Singapore. The company obtained the license from the Monetary Authority of Singapore (MAS) after receiving approval in principle in May.
The scope of the license will see Japanese group subsidiary SBI engage in regulated activities in corporate finance and custody services with the digital asset ecosystem for public and private investors. Following the licensing, SBI Digital Markets announced plans to create its own digital asset securities platform to help traditional finance operators transition to Web 3.
“Receiving the license and support from SBI Group sends the message that we are a premier institutional digital asset issuance platform for financial institutions in the region,” said Winston Quek, CEO of SBI Digital Markets. “Singapore’s financial regulatory system is one of the most respected in the world for its rigor and transparency, so the MAS license signals the standards by which we will operate to our potential partners.”
The company’s recent milestone is part of a renewed effort to explore new frontiers after the disastrous macroeconomic effects of the past six months. The company was forced to end its mining operations in Russia due to falling prices and tougher sanctions imposed by Western powers.
Across the Atlantic, a branch of the company has received the green light from the US Commodity Futures Trading Commission (CFTC) to offer OTC digital asset derivatives through physical settlement.
As a subsidiary of the financial conglomerate SBI Group, analysts anticipate the firm’s collaboration with its sister companies. The company revealed after receiving a principle that it would partner with Asia Digital Exchange, a Singapore-based digital asset exchange, and Swiss SIX Group.
Singapore regulator uses a tight leash on the industry
The MAS is the country’s central bank, responsible for promoting economic growth. To fulfill its legal obligations, the MAS has the power to grant and revoke licenses to companies operating in the digital asset industry.
In recent months, the regulator has taken a tougher stance toward the industry as a whole to discourage speculation, which its chief executive Ravi Menon says is “the source of the crypto world’s problems.” MAS says it will achieve this by “adding friction” to digital assets by prohibiting their use and stifling access to credit facilities for merchants.
Watch: BSV Global Blockchain Convention panel, Blockchain for digital transformation of nations
width=”562″ height=”315″ frameborder=”0″ allowfullscreen=”allowfullscreen”>
New to Bitcoin? Discover CoinGeek bitcoin for beginners section, the ultimate resource guide to learn about bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.