04/10/2023 (Singapore) - Ripple, the prominent cryptocurrency company, announced on Wednesday its acquisition of a full license to operate in Singapore. This accomplishment underscores Ripple's growing commitment to its Asia-Pacific headquarters, which has been situated in Singapore since 2017.
Brad Garlinghouse, Ripple's CEO, conveyed, “We have hired exceptional talent and local leadership, doubling headcount over the past year and plan to continue growing our presence in a progressive jurisdiction like Singapore.” This expansion initiative aligns with Ripple's efforts to cement its presence in the Asia-Pacific region, a market where the firm identifies a significant chunk of its business operations.
Following an initial in-principle nod from the Monetary Authority of Singapore in June, this full license now empowers Ripple to offer regulated crypto payment services within the city-state. Echoing the company's strategic emphasis on the region, Ripple stated, “Over 90% of our business is outside of the U.S., and Singapore – and to a larger degree Asia Pacific – is one of its fastest-growing regions.”
Monica Long, Ripple's president, previously shared insights on the company's burgeoning growth, remarking that the headcount at the Singapore office "has more than doubled in the past year because our business within the Asia-Pacific region has really exploded."
Singapore stands as a pioneer in crypto regulation within Asia. The Payment Services Act, effective since January 2020, oversees payment and cryptocurrency services offered to the public. Additionally, the country mandates crypto service providers to ensure customer assets are safeguarded under a statutory trust by 2023's end. Moreover, such providers are restricted from facilitating the lending or staking of their retail customers' assets.
Praising the country's balanced approach to fintech and digital asset regulation, Garlinghouse noted, “Under MAS’ leadership, Singapore has developed into one of the leading fintech and digital asset hubs striking the balance between innovation, consumer protection, and responsible growth.”
Contrastingly, Ripple's relationship with the U.S. regulatory framework remains tense, as the company, along with Coinbase, faces legal battles with the Securities and Exchange Commission (SEC). In 2020, the SEC accused Ripple and its founders of selling its native cryptocurrency, XRP, without the requisite SEC registration. A consequential ruling in July, however, clarified that XRP wasn't inherently a security.
Coinbase, mirroring Ripple's achievement, disclosed this week that it has also secured a major payment institution license in Singapore. Both firms join an expanding list of over a dozen entities authorized to provide cryptocurrency services in the city-state.