StraitsX has obtained In-Principle Approval (IPA) from the Monetary Authority of Singapore (MAS) as a Major Payment Institution (MPI).
Much like the others that have acquired the MPI license in Singapore before it, such as GSR, Coinbase, and Ripple, this approval allows StraitsX to operate as a licensed provider for digital payment token services.
The license is specifically for issuing XSGD and XUSD, stablecoins pegged at 1:1 to the Singapore Dollar and US Dollar, respectively.
StraitsX states this approval will allow it to align with MAS' upcoming stablecoin regulatory framework.
Presently, XSGD is issued by Xfers Pte. Ltd. and is actively traded on the StraitsX platform.
The company states that the release of XUSD is anticipated in the near future.
Having significant experience in managing stablecoins, StraitsX indicates that they will ensure compliance with key requirements, so as to adhere to MAS' forthcoming Single-currency pegged stablecoin (SCS) regulatory framework.
Total supply of XSGD, as of point of publication, is just above 33 million - with about 21.5 million on Ethereum, 8 million on Polygon and about 3.5 million on Zilliqa.
StraitsX sets a 1:1 peg of its stablecoins to underlying currencies, with reserves held in cash or MAS and U.S. Treasury-issued debt securities.
Rigorous, bi-monthly independent audits of reserve assets, conducted by certified public accountants in Singapore, provide assurance of compliance with regulatory requirements.
These reserve assets are segregated from StraitsX's corporate assets.
These assets are held in custody with a financial institution licensed or regulated by MAS to provide custodial services, guaranteeing the right of holders to redeem the value of stablecoins directly with them or appointed distributors.
Withdrawal of fiat currency to a whitelisted bank account is assured within 5 business days of a legitimate redemption request.
The issuer then maintains a base capital at all times, equivalent to the higher of SGD 1 million or 50% of its annual operating expenses.
This capital, held in liquid assets, undergoes annual external audits to ensure adequacy in case of recovery or winding up.
StraitsX has facilitated a total of 7.8 billion XSGD since October 2020.
Coinlive previously reported on how the company worked with ride-hailing giant Grab and UOB to create the SG Pitstop pack - it being an example of purpose-bound money.
These initiatives align with MAS' Project Orchid, illustrating the potential for special conditions in digital money transfers.
Any place where transactions are conducted outside of traditional exchanges can be considered an OTC market. As an international financial center, Hong Kong's open attitude and policies towards cryptocurrencies provide a new channel for mainland Chinese investors.
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JinseFinanceNever participate in any illegal and criminal activities such as fund laundering, telecommunications fraud, and online gambling, otherwise your assets will not be safe.
JinseFinanceIf you observe carefully, you can find that there are many crypto exchange shops scattered on the streets of Hong Kong.
JinseFinanceOn February 2, 2024, Hong Kong Secretary for Financial Services and the Treasury Hui Ching-yu said that the government believes that it is necessary to bring virtual currency over-the-counter exchanges (OTC) into supervision.
JinseFinanceAmong the typical cases recently jointly issued by the Supreme People's Procuratorate and the State Administration of Foreign Exchange to punish foreign exchange-related crimes, there are two cases involving OTC business in the currency circle. Below, the author will analyze the legal risks existing in the OTC business of the currency circle based on cases.
JinseFinanceIf mainlanders go to Hong Kong to conduct exchange business between USDT and Hong Kong dollars or US dollars, will it constitute an illegal crime within the country, especially the "illegal foreign exchange purchase and sale" included in the crime of illegal business operations?
JinseFinanceOn December 27, 2023, the Supreme People's Procuratorate and the State Administration of Foreign Exchange issued the "Notice on Issuing Typical Cases of Punishing Foreign Exchange-Related Crimes", stating that it is necessary to strengthen the connection between executions and crack down on illegal cross-border financial activities in accordance with the law.
JinseFinanceIn recent days, there has been a lot of news circulating on the Internet about the illegal financial activities of buying and selling virtual currencies, making friends in the currency circle panic.
JinseFinanceRegarding the behavior of OTC merchants making money from the price difference by buying and selling the stable currency USDT, can these currency exchanges be charged with an "illegal business crime"?
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