The Monetary Authority of Singapore (MAS) granted today (April 27) “in-principle approval” to fintech firms Revolut and Luno Singapore to offer digital payment token services under the Payment Services Act.
Revolut in particular, is allowed to operate a fully regulated cryptocurrency service, along with merchant acquiring services.
Revolut Technologies Singapore Pte Ltd (RTS) is already licensed as a Major Payment Institution in Singapore. With this latest approval, RTS will be able to provide digital payment token, or cryptocurrency, services in Singapore.
Meanwhile, Luno Singapore — which is already regulated by the Securities Commission of Malaysia and registered with Indonesian authorities — said that it will be better positioned to help accelerate Singapore’s growth as a crypto hub and help investors better identify opportunities that are able to meet their digital asset needs.
Strong growth from both companies
According to Revolut, its customer base in Singapore has grown six-fold since the onset of the Covid pandemic, and its revenue run rate has more than doubled in the past 12 months.
“It’s clear from the assessment progress of licence applications, that while Singapore has received an impressive number of applications, the MAS has focused on issuing an in-principle approval to those it considers to be robust, well-governed, high-growth businesses, who can best leverage the strengths of Singapore while contributing to increased employment and capital deployment for the nation,” said Nik Storonsky, co-founder and CEO of Revolut Group.
Meanwhile, Luno has garnered over 10 million customers across over 40 countries, with over one million added within the last six months. This follows a successful year that saw Luno grow its global customer base by 35 per cent year-on-year, and aims to bring cryptocurrency to over one billion customers by 2030.
Founded in 2013, Luno is a global cryptocurrency platform that aims to put the power of cryptocurrency in everyone’s hands. It was acquired by Digital Currency Group in 2020, and has secured further funding from investors including Google and GIC Singapore.
The company also recently launched Luno Expeditions, a global, early-stage investment arm to support the best fintech and crypto/web3 founders on their journeys to build the next generation of financial services.
“We are thrilled to receive MAS’ in-principle approval to provide Digital Payment Token (DPT) services in Singapore as a Major Payment Institution. We firmly believe that regulation brings clarity and protection to businesses and consumers, and obtaining the IPA is just one of the first few steps in our long-term commitment to the progressive and sustainable development of Singapore as a global financial hub,” said Sherry Goh, global expansion manager and country manager for Luno Singapore.
“With this in-principle approval, we hope to instil greater trust and confidence in the market, so that customers can continue to trust and use our platform safely and securely.”
Featured Image Credit: Monetary Authority of Singapore