Crypto-custody company and brokerage company, Propine, graduated from Singapore’s Fintech Regulatory Sandbox Program with a Capital Markets Services License and a Green Light to launch full operations.
The Singapore-based securities services firm for institutional clients was admitted to the MAS regulatory sandbox on 8 November 2019 and participated for just over a year before being given leave permission on 7 January, according to a recent report on the company’s website.
Singapore Financial Law specifies that a corporation shall hold a Capital Markets Services License if it wishes to perform business practises governed under the Singapore Securities and Futures Act. Upon effective completion of the programme, Propine acquired a CMS licence and will now continue to carry out its full range of offerings, including, though not limited to, digital asset custody, transaction settlement facilitation, asset services and services for global securities issuers.
Propine CEO Tuhina Singh indicated that a simple regulatory structure established by the MAS could help catalyse institutional engagement in tokenization and cryptocurrency:
“Having a clear regulatory framework is of vital importance for the safe development of security token. This allows hesitant but eager institutions waiting on the sidelines, to be able to participate in tokenization. Compliant infrastructure is a rock bed on which the foundations of the security token ecosystem are created.”
The Chief Fintech Officer of the MAS, Sopnendu Mohanty, said that the digital asset market is growing at an accelerated pace and that regulators have a responsibility to provide regulatory protections to insure that confidence in the industry does not collapse.
“The digital asset environment, fueled by financial technologies and creativity, is rising at an accelerated pace in the financial market. It is important to secure and service these digital assets securely and efficiently so that trust in the environment can be sustained,” said Mohanty.
Mohanty said Propine’s custody service uses a dual-layer multi-signatory system that is not native to any single chain but is an agnostic blockchain. The Fintech officer said he hoped that digital asset custody technologies would soon emerge in Singapore and abroad.
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