Moomoo claims to be first MAS-approved digital broker for payment token service | The Asian Banker
Sunday, 3 March 2024

Moomoo claims to be first MAS-approved digital broker for payment token service

5 min read

Moomoo Financial Singapore (Moomoo Singapore) is one of the first digital brokerages in Singapore to receive in-principle approval for a Major Payment Institution (MPI) licence - digital payment token service, from the Monetary Authority of Singapore (MAS).

With the MPI licence for digital payment token service, Moomoo Singapore will be able to offer digital payment token services to retail and institutional investors in Singapore upon receipt of a full licence.

To date, only 15 firms have been granted the MPI licence for digital payment token service from the MAS, as well as a further two firms who hold the Standard Payments Institution licence. All 17 firms are able to provide digital payment token services, such as the buying and selling of digital payment tokens on their platforms.

Gavin Chia, CEO, Moomoo Singapore said: “We are proud to be one of the first digital brokerages in Singapore to receive in-principle approval for a MPI licence. This is a significant milestone for us and will pave the way for us to introduce digital payment token service on our platform. We will work closely with MAS to secure approval for a full licence soon.”

In recent years, Singapore has emerged as a major cryptocurrency hub in Asia, driven by support from MAS to foster Singapore as a digital asset hub and its tough but fair regulatory regime on the sector.

The value of investments in cryptocurrency and blockchain reached $1.2 billion (SGD 1.6 billion) in 2022 in Singapore, an increase from just $109.75 million in 2020, according to market research firm Statista.

Institutional investors in Singapore view cryptocurrency as a long-term investment, with three in four respondents indicating that they intend to increase their crypto allocations in 2024, driven by the expectation of higher future returns, according to a survey of more than 150 institutional investors conducted by Swiss crypto bank Sygnum.

About 61 % of respondents based in Singapore view the island-state as crypto-friendly, given its status as a pioneer in crypto regulations.

The report also showed that investors are increasingly demanding greater transparency, governance and counterparty risk management. 85% of the respondents polled by Sygnum said regulated service providers are essential for building trust in the crypto market.

The payments sector in particular, appears to be the most mature segment in Singapore’s fintech scene, according to a joint report by PwC Singapore and the Singapore FinTech Association.

Chia said: “Over the years, we have seen an increase in volume of queries from our clients with regard to the trading of digital payment tokens on our platform. We have heard you and have worked hard to fulfil the regulatory requirements from MAS. We thank our clients for their patience and we look forward to expanding our suite of offerings to them.” 

Re-disseminated by The Asian Banker

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