Circle Singapore Secures MPI License, Expands Operations in Asia

Circle Singapore Secures MPI License, Expands Operations in Asia

Circle, the fintech company known for its USDC and Euro Coin stablecoins, has successfully obtained an MPI (Major Payment Institution) license from the Monetary Authority of Singapore (MAS) for its subsidiary, Circle Internet Singapore. This license enables Circle to offer digital payment token services as well as domestic and international money transfer services.

The company’s decision to launch an office in Singapore in May was strategic, as Singapore will now serve as Circle’s primary center in Asia. Jeremy Allaire, co-founder and CEO of Circle, emphasized the importance of Singapore in the company’s global expansion plans, stating, “Singapore is integral to Circle’s growth on a global scale.”

Circle’s MPI license follows in the footsteps of other notable firms. Crypto.com, for instance, received its MPI license on June 1 after obtaining in-principle permission in June 2022. Additionally, several other companies, including DBS Vickers, Digital Treasures Center, Fomo Pay, Independent Reserve, Metacomp, Paxos, Revolut, Sparrow Tech, and Hako, have also secured MPI licenses, showcasing Singapore’s appeal as a potential expansion location in the crypto industry.

While the market share of USDC dropped to 23.05% in May, with Tether becoming the largest stablecoin worldwide, Singapore remains a significant player in the cryptocurrency landscape. A 2022 report indicates that Singapore accounts for 6% of the total crypto market, tying it with Switzerland and Hong Kong for third position after the United States and the United Kingdom. Singapore’s crypto-friendly legislation and high adoption rate contribute to its attractiveness as a crypto hub.

Singapore’s state-owned investment firm, Temasek, has also shown support for the cryptocurrency sector by acquiring stakes in Animoca Brands, Amber Group, and other crypto-related ventures. Additionally, Temasek invested $275 million in the now-defunct cryptocurrency exchange FTX. As the US regulators intensify their scrutiny of the crypto industry, many firms are exploring international expansion opportunities in jurisdictions with a favorable crypto landscape. Hong Kong is also emerging as a prominent destination for crypto-related activities.