SBI Digital Markets Pte Ltd has received a Capital Markets Services (CMS) license in Singapore. The firm was issued the license by the Monetary Authority of Singapore (MAS) after receiving an in-principle approval in May.
The scope of the license will see the subsidiary of the Japanese SBI group carry out regulated activities in the spheres of corporate finance and custody services with the ecosystem of digital assets for both public and private investors. After receiving the license, SBI Digital Markets says it plans to create its own digital asset security platform to help operators with traditional financial transition to Web 3.
“Being awarded the license and the support of the SBI Group sends a message that we are a first-choice institutional digital asset bond issuance platform to financial institutions in the region,” said Winston Quek, CEO of SBI Digital Markets, said. “Singapore’s financial regulatory system is one of the most respected systems in the world for its rigor and transparency, so MAS’s license indicates the standards to which we will operate to our potential partners.”
The recent milestone achieved by the firm is part of a renewed effort to explore new frontiers following the dire macroeconomic consequences of the past six months. The company was forced to end its mining operations in Russia due to falling prices and tougher sanctions imposed by Western powers.
Across the Atlantic, an arm of the company has been given the green light by the US Commodity Futures Trading Commission (CFTC) to offer OTC digital asset derivative products using physical settlement.
As a subsidiary of financial conglomerate SBI Group, analysts expect the firm to cooperate with its sister companies. The firm announced after receiving an in-principle that it will partner with Asia Digital Exchange, a Singapore-based digital asset exchange, and Switzerland’s SIX Group.
Singapore’s regulator keeps a tight leash on the industry
The MAS serves as the country’s central bank, charged with promoting economic growth. To fulfill its statutory duties, the MAS has the power to grant and revoke licenses to companies operating in the digital asset industry.
The regulator has taken a tougher stance towards the entire industry in recent months to discourage speculation, which managing director Ravi Menon says is “the source of the crypto world’s problems.” The MAS says it will achieve this by “adding friction” to digital assets by banning their use and stifling access to credit facilities for traders.
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