Propine, the Singapore-based crypto-custody provider and securities firm, is emerging with a Capital Markets Services License and the green light to commence full operations, as it has graduated from the Monetary Authority of Singapore’s fintech regulatory sandbox program.
It has been reported according to a recent post on the firm’s website that the Singapore-based securities services firm for institutional clients was admitted entry to the MAS regulatory sandbox on November 8, 2019, and participated for just over a year before being granted approval to exit on January 7.
However, Singapore’s financial law states that a company must hold a Capital Markets Services License if it wishes to conduct business activities regulated under Singapore’s Securities and Futures Act.
Upon successful completion of the program, Propine gained a CMS license and will now begin to roll out its full range of services, including, but not limited to, digital-asset custody, trade settlement facilitation, asset servicing, and services catering to global securities issuers.
Excellent news for institutions in Singapore seeking crypto custody! Propine, a crypto-custody provider, just received its license from the regulatory sandbox program. Will this stamp of approval encourage institutions to jump at the opportunity?https://t.co/gdN2M0m9tB — Cointelegraph (@Cointelegraph) January 11, 2021
Tuhina Singh, the CEO of Propine, suggested that the clear regulatory framework provided by the MAS could help catalyze institutional participation in tokenization and cryptocurrency.
Singh added:
“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.”
Likewise, Sopnendu Mohanty, the Chief Fintech Officer of the MAS, said that the digital-asset industry is growing at an accelerated pace and that regulators have a duty to provide legal safeguards so that trust in the industry doesn’t fail.
Mohanty added:
“The digital asset ecosystem, fuelled by financial technology and innovation, is growing at an accelerated rate in the financial industry. It is crucial to safeguard and service these digital assets effectively yet efficiently so that trust in this ecosystem can be maintained.”
He further said that Propine’s custody service uses a dual-layer multi-signatory mechanism that is not native to any one chain but rather is blockchain agnostic.
Thus, Mohanty said that he soon hopes to see digital-asset custody solutions emerge in Singapore and abroad.
Source: Cointelegraph