The Singaporean branch of South Korean cryptocurrency exchange Upbit achieved a significant milestone today, receiving preliminary approval from the Monetary Authority of Singapore (MAS) for a major payment institution licence under the Payment Services Act, which governs the activities of crypto market participants.

This nod from the regulatory body marks a promising step forward for Upbit Singapore, paving the way for the expansion of its regional business operations from the heart of the Republic.

This regulatory approval is of paramount importance as it enables Upbit Singapore to continue providing regulated digital payment token (DPT) services, particularly catering to institutional investors.

Notably, Singapore has become a focal point for global industry leaders seeking a secure environment for their crypto endeavours.

This heightened interest from institutional investors can be attributed to the prevailing geopolitical uncertainties, drawing family offices, private trusts, and high-net-worth individuals to the city-state and thereby propelling the growth of assets under management.

Upbit Singapore

It is worth emphasising that while Upbit Singapore serves both institutional and retail investors, the MAS has issued a cautionary note regarding retail participation in crypto trading.

Source: Upbit Singapore (Singapore's branch pictured in front of the iconic Marina Bay Sands)

The inherent volatility and high-risk nature of cryptocurrency trading make it unsuitable for this particular investor segment.

Azman Hamid, the firm's chief compliance officer, expressed his excitement:

"We are incredibly proud to receive the IPA from MAS, a globally renowned financial regulator. This approval reflects our unwavering commitment to building trusted digital asset businesses in Singapore. Through engaging collaboration with the regulator, businesses and communities, we will contribute to further establish Singapore as the leading hub for the next generation of financial businesses."

Established in 2018, Upbit Singapore initially received exempt status from MAS to provide services involving direct banking.

Diverging from its South Korean counterpart, the Singapore entity functions as the Asia-Pacific arm for Upbit's global operations, thereby encompassing a broader regional scope, including operations in Indonesia and Thailand.

At present, Upbit Singapore boasts approximately 80 employees across the region, with a significant portion, 20 individuals, based in Singapore itself.

Upbit Singapore's Chief Operating Officer Raks Sondhi spoke about the manpower:

"While our core team has been established, Upbit Singapore is doubling our manpower in compliance and legal, and institutional and Web3 business development following this regulatory approval."

CEO Alex Kim anticipates a shift from the current "stealth mode" once the exchange obtains a full license, promising to enhance the offering of digital assets, liquidity, and institutional services.

He added:

"Since 2018, we have been building solid foundations for a robust digital asset business in Singapore, the leading financial hub in Asia. This approval from MAS is a strategic milestone for us to deepen our presence in Singapore, which is at the forefront of digital asset innovation. Singapore, as our global powerhouse, unlocks new capabilities for retail, institutional, and infrastructure focused businesses."

Upon securing full approval, Upbit will join the ranks of 15 crypto firms with complete MPI (Major Payment Institution) digital payment token service licences from MAS.

October saw a flurry of activity, with the Singaporean entities of Coinbase, Ripple, and Sygnum Bank all securing licencing approvals from MAS, thereby bolstering the growing ecosystem.

Nonetheless, industry experts acknowledge the challenges inherent in the cryptocurrency landscape, characterised by business closures and discreet team dissolutions.