South Korean crypto exchange Upbit gets Singapore regulator’s nod

SINGAPORE – South Korean cryptocurrency exchange Upbit’s Singapore entity has received a preliminary nod from the regulator, paving the way for the firm to build its regional business from the Republic.

Upbit Singapore on Monday said it received an in-principle approval from the Monetary Authority of Singapore (MAS) for a major payment institution licence under the Payment Services Act, which governs crypto players.

The approval will allow the exchange to continue to provide regulated digital payment token (DPT) services to institutional investors.

Global industry players have set their sights on Singapore as a pillar of growth as institutional investors flock to the Republic amid geopolitical uncertainty.

These non-retail clients comprising family offices, private trusts and high-net-worth individuals have fuelled Singapore’s growth of assets under management.

The exchange said its business here also serves retail investors – a group that MAS warned was unsuitable for crypto speculation as trading is volatile and highly risky.

Upbit Singapore was set up in 2018. In 2020, it received exempt status from the MAS to provide services with direct banking, said its founder and chief executive Alex Kim.

The exchange’s South Korean business serves only retail investors, while the Singapore entity is the Asia-Pacific arm for global business.

In the region, the exchange also operates in Indonesia and Thailand.

It has about 80 employees in the region, of whom 20 are based in Singapore.

Mr Raks Sondhi, chief operating officer at Upbit Singapore, said: “While our core team has been established, Upbit Singapore is doubling our manpower in compliance and legal, and institutional and Web3 business development following this regulatory approval.”

Mr Kim added that once the exchange receives the full licence, it would exit from its current “stealth mode” and increase the list of digital assets available, along with liquidity and institutional offerings.

So far, more than a dozen market players have been granted full licences to offer DPT services, with exchange Coinbase, payment network Ripple and crypto bank Sygnum Singapore among the most recent recipients.

Singapore may have stolen a march in exploring Web3 and blockchain but industry players have acknowledged that the crypto winter is real, with businesses folding and teams quietly let go.