US-based crypto trading firm Cumberland has received in-principle approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution (MPI) License.

The firm has expressed its enthusiasm about strengthening its foothold in Singapore, emphasizing its commitment to compliance and market expertise.

"We look forward to expanding our presence in this important region, bringing our disciplined approach to compliance, proven market expertise, and commitment to the digital asset ecosystem to counterparties in Singapore and beyond."

Singapore’s Rigorous Licensing Process for Crypto Firms

Cumberland, a subsidiary of Chicago-based trading firm DRW, is a leading liquidity provider in the crypto market, offering over-the-counter trading services for institutional clients.

The firm facilitates large-scale digital asset transactions and market-making activities across a range of crypto.

The approval marks a significant milestone for Cumberland’s expansion into Singapore, a key financial hub for digital assets. However, Cumberland clarified that while the in-principle approval signals strong regulatory confidence, it does not yet constitute a full license.

The MPI license, once fully granted, would allow Cumberland to provide regulated digital payments token services in the city-state. But the MAS also retains the right to revoke the approval if necessary.

In recent years, Singapore has gained the likes of many crypto companies like OKX and Gemini, who have been seeking regulatory approval in Singapore because of its progressive stance on digital assets. But these companies often has to undergo a rigorous approval process before they could get the green light.

In October 2024, Gemini received in-principle approval to offer digital payment token services and cross-border money transfers, further cementing Singapore’s reputation as a crypto-friendly jurisdiction. The following month, OKX introduced instant Singapore dollar deposits and withdrawals for local customers after securing a payments license from the Monetary Authority of Singapore (MAS) in September.

As of March 2025, MAS has granted a total of 29 digital payment token licenses, with notable recipients including Coinbase, BitGo, and Anchorage, according to the central bank’s latest data. This growing list highlights Singapore’s commitment to fostering a well-regulated and thriving digital asset ecosystem.

To obtain an MPI license, companies must comply with capital adequacy requirements and stringent anti-money laundering (AML) measures before being granted full operational status. Jason Tay, Head of Commercial at StraitsX, noted that firms applying for the MPI license or the forthcoming stablecoin license must meet stringent regulatory standards.

"All firms seeking to operate as legitimate and recognized entities must undergo the same rigorous licensing process."

A December 2024 study by ApeX Protocol highlighted Singapore’s emergence as a global leader in blockchain innovation. The study ranked the city-state among the top jurisdictions for digital assets, considering factors such as blockchain patents, the number of crypto exchanges, and the availability of crypto-related jobs.

Singapore’s regulatory approach aims to balance innovation with financial security, ensuring that only credible and compliant firms are allowed to participate in the growing digital asset ecosystem.

US SEC Drops Legal Case Against Cumberland

In a separate development, the US Securities and Exchange Commission (SEC) has dropped its case against Cumberland, marking a significant shift in its enforcement actions against crypto firms. The SEC had previously charged Cumberland DRW in October 2024, accusing the firm of operating as an unregistered dealer since March 2018. The regulator alleged that Cumberland had engaged in the buying and selling of cryptocurrencies without the necessary registration.

However, in March 2025, the SEC agreed to drop the case, though final approval for its dismissal remains pending. This decision is part of a broader pattern in which the regulator has been scaling back legal actions against crypto firms, signaling a potential shift in regulatory oversight under the current administration.

Cumberland’s approval in Singapore and the dismissal of its US case reflect the evolving landscape of crypto regulation. While Singapore continues to establish itself as a hub for compliant digital asset firms, the US regulatory environment remains in flux, raising questions about the future of enforcement actions in the industry.