Gemini Dumps Canada For The Crypto Friendly Singapore

Gemini recently secured preliminary approval from Singapore’s central bank, the Monetary Authority of Singapore (MAS), to offer some of its services in the country.

On October 29, MAS granted Gemini in-principle approval for a Major Payment Institution (MPI) license, enabling the exchange to provide digital payment tokens and cross-border money transfers.

Gemini regards this approval as a significant milestone as it boosts the company one step toward strengthening its compliance in the Asia-Pacific region. The exchange plans to continue working towards obtaining full MPI license approval.

Expanding Gemini’s Presence in Singapore

In a recent statement, Saad Ahmed, Head of Gemini’s Asia-Pacific division, highlighted how the approval brings the platform closer to delivering tailored, localized services to Singaporean users.

Ahmed stated, “While the United States remains our largest market and global headquarters, Asia—and Singapore, in particular—play a crucial role in our global strategy.”

To support this expansion, Gemini’s Singapore team is actively recruiting talent and relocating to a larger office to accommodate its growing workforce, underscoring its commitment to the region.

Why Singapore of all countries?

One of the possible reasons why the New York exchange chose Singapore could be because of the user base that the company has in Singapore.

Interestingly, Singapore is the world's second-largest market for the New York-based exchange after the United States.

Another reason why Gemini could have chosen Singapore is because the company favors the country's regulations. Regulation is something the company has been struggling with in recent years, especially if you watch Gemini's development in Canada.

Earlier this month, the U.S-based platform exited Canada, a market it once called "essential" for growth due to the increasing regulatory demands, which seems to be a little too much for not just Gemini but many other exchanges like Binance and OKX, who also later left Canada.

Gemini also said that it is currently focusing its footprint in Singapore because of the crypto regulatory framework set by the MAS, which balanced innovation and consumer protection in the nascent digital asset industry.

Singapore’s rising status as a crypto hub

Singapore has indeed been a crypto exchange magnet with its crypto-friendly regulations and thriving ecosystem, and MAS has been the one spearheading Singapore's crypto movement.

Over the years, the regulator has approved multiple overseas crypto platforms, including OKX, Kraken and Coinbase to offer their services to Singaporean customers.

The MAS is among the few regulators that offer a comprehensive regulatory framework

The regulator published its first regulator framework for digital assets in 2019.

The government has since amended the payment Service Act to include cryptocurrencies.

In July 2023, the MAS issued new crypto regulations with a focus on investor protection. The regulator's proactive approach has helped to create a favorable business environment, attracting numerous foreign crypto exchanges, including Gemini, to set up operations in Singapore.

Gemini continues to push for full MPI license approval

Once Gemini secures full MPI license approval, it will gain flexibility in exceeding volume limits for payment transactions, allowing the firm to surpass the current thresholds of 3 million Singapore dollars ($2.26 million) for individual payment services and $4.4 million for multiple services combined.

With this potential full license, Gemini would join a roster of U.S.-based firms such as Coinbase and Ripple, which also hold MPI licenses in Singapore.