Gemini Gains Provisional Approval from MAS for Digital Payment Token Operations
New York-based cryptocurrency trading firm Gemini recently received backing from Singapore’s regulatory body to carry out its proposed expansion plans in the region. Before now, Gemini has attempted several times to solidify its activities in Singapore. However, regulatory constraints have hindered the vision. Therefore, the go-ahead signal could qualify as a significant boost for Gemini as it would help to spread its operating tentacles. Relaying the latest development to the public, Saad Ahmed, the head of Gemini APAC operations, 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.” Gemini Will Offer Fresh Services as Part of the New Licence Approval According to reputable reports, the Monetary Authority of Singapore (MAS) approval would grant Gemini the license to offer Digital Payment Token (DPT) services and perform inter-regional transactions. Singapore is the second most effective supporter of the Gemini network. Hence, it becomes safe to assert that it has attracted the company’s attention. For context, Gemini is the leading digital company in Singapore, followed by other crypto firms like Bitget, MEXC, Kraken, and Binance in no particular order. Expanding Singapore-Based Trading Firm Part of the efforts to sustain the trading pressure that could stem from the added features include Gemini expanding the workforce. The total number of functional team members in the region will double from the current 40 individuals. Saad Ahmed spoke on expanding the Singapore workforce. In his exact wording, he stated: “We are also in the middle of our move to a larger office space to accommodate Gemini’s growing local team, a testament to our long-term commitment to Singapore.” He went further to discuss the US presidential elections, where he gave conflicting remarks about the upcoming US elections. He remained optimistic that the outcome of the election would not negatively impact the cryptocurrency ecosystem. Instead, it would ensure an upward trajectory of growth for the company.
How to Get Started with Crypto and Remittances
Did you know that in 2023 alone, global remittances reached over $857 billion, with fees averaging around 6% per transaction? Crypto and remittances have made it easy to send money across the world in seconds, without any high fees, long delays, or reliance on traditional financial institutions. For millions of families around the world, crypto can have far-reaching implications due to its faster and more accessible way to transfer funds. In this guide, you will learn how to get started with crypto and remittances. Key Takeaways Crypto and Remittances: What They Are Remittances are funds sent by individuals to their families, friends or communities usually around the world. These transfers are often made to support household expenses such as education, healthcare and daily living costs. Remittances represent a significant source of income for many people, particularly in developing nations. They also play a critical role in economic development and poverty alleviation as a way of contributing to improved living standards for recipients. Cryptocurrencies are decentralized digital currencies that rely on blockchain technology to enable secure, peer-to-peer transactions without intermediaries like banks or financial institutions. Bitcoin, launched in 2009, was the first cryptocurrency and remains the most well-known. Since then, numerous other cryptocurrencies have emerged, including Ethereum and a variety of stablecoins. The use of crypto for transactions is growing due to its efficiency, security, and global accessibility. “Cryptocurrencies are transforming the global remittance industry by offering faster, cheaper, and more inclusive solutions for cross-border payments.” Importance of Crypto in the Remittance Industry The remittance industry, traditionally dominated by services like Western Union and MoneyGram, is often criticized for high fees, long processing times, and limited access in remote areas. However, through cryptocurrencies, the remittance industry is undergoing some changes. Crypto allows for faster, cheaper, and more secure cross-border payments, making it a promising alternative for millions of people who rely on remittances. Additionally, blockchain technology provides greater transparency and security which reduce the risks of fraud and enhance the trustworthiness of transactions. Crypto-based remittances also offer an important solution to the issue of financial inclusion, as many individuals in developing countries lack access to traditional banking systems. As a result, using digital wallets, even those without a bank account can send and receive money, thus opening new avenues for economic participation. Challenges of Traditional Remittance Systems Here are some of the key players in traditional remittance services and their challenges: Western Union As one of the oldest and largest players in the remittance industry, Western Union has a global presence in over 200 countries, offering both digital and in-person transfer services. It is known for its wide network of physical locations, allowing people without bank accounts to send and receive cash. However, Western Union is also notorious for its high fees, especially for cross-border transfers. MoneyGram Another major player in the remittance space, MoneyGram offers services similar to Western Union, with a strong global footprint and both digital and physical transfer options. Like its competitor, MoneyGram charges relatively high fees for international transfers, often depending on the destination and payment method. Despite efforts to modernize through digital platforms, its reliance on physical locations and intermediaries has kept costs and processing times relatively high. Banks and Wire Transfers Traditional banks also play a significant role in the remittance ecosystem, particularly through wire transfers. These services are often used for larger amounts and more formal transfers, but they tend to come with high fees and long processing times. Banks typically charge between $25 and $50 per international wire transfer, and the funds can take anywhere from 2 to 7 business days to reach the recipient. Additionally, currency exchange rates offered by banks often disadvantage customers, making these transfers even more expensive. “Why wait days and pay big fees to send money? With crypto, you can skip the middlemen and get cash across the globe in minutes, without breaking the bank!” The Emergence of Cryptocurrency in Remittances With the rise of digital currencies, crypto has found its utility in many ways, like trading and gaming, among others. Here are some of the kinds of crypto suitable for use in remittances: Bitcoin Bitcoin, the first and most widely recognized cryptocurrency, was introduced in 2009. It allows peer-to-peer transactions without the need for intermediaries, making it a popular choice for remittances. While Bitcoin’s value can be volatile, its decentralized nature and global accessibility make it an attractive option for cross-border payments. With a growing number of businesses and services accepting Bitcoin, it has become a viable alternative to traditional remittance services for those seeking faster and more cost-effective solutions. Ethereum Ethereum, launched in 2015, expanded the use of blockchain beyond simple transactions by introducing smart contracts which are programmable agreements that automatically execute when predefined conditions are met. In terms of remittances, Ethereum provides a platform for creating decentralized applications (dApps) that can facilitate automated, secure, and low-cost transfers. Although transaction fees on the Ethereum network can vary, the system’s flexibility and adaptability make it an increasingly popular choice for remittances and financial applications. Stablecoins Stablecoins are digital currencies pegged to the value of stable assets, such as the US dollar or gold, which help mitigate the volatility often seen in other cryptocurrencies like Bitcoin and Ethereum. USDC (USD Coin) and Tether (USDT) are two of the most widely used stablecoins in remittances, offering a stable value while retaining the benefits of crypto transactions, such as low fees and instant transfers. Stablecoins offer a reliable solution for remittances, especially in countries with volatile local currencies or where accessing foreign currency is difficult. Platforms for Crypto Remittances Here are some of the major platforms and key players in crypto remittance services: Upay Upay provides a seamless mobile payment platform, designed to streamline digital transactions for businesses and consumers alike. With a unified payment interface, Upay allows users to pay for goods, services and bills with ease, directly from their mobile devices. Upay’s technology supports multiple payment methods, including direct bank transfers and digital wallets, ensuring
Notable Cryptocurrency Regulations Around the World
The rise of cryptocurrencies from mere speculative investments to deployment in different spheres of our lives has forced Government authorities around the world to take definite regulatory actions on cryptocurrencies. Some have taken protective measures for their citizens while others have stifled its growth. In this guide, we look at some of the legislative postures and activities of different countries on exchange and coin regulation. United States of America The U.S. does not consider cryptocurrencies as legal tender but treats it as property for tax purposes. Simply put, the land of the free is slowly allowing cryptocurrencies to thrive, albeit under some regulations. In 2022, for instance, the government announced a new framework that empowered market regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to oversee the crypto sector. The SEC has been actively regulating the industry which was evident in the lawsuits against crypto-centric businesses and projects, like Ripple, CoinBase, and Binance. However, recent court decisions, such as the partial victory for Ripple against the SEC and the approval of Bitcoin spot ETFs in January 2024, indicate that the U.S. is still evolving. Read Also: Cryptocurrency Security Breach Statistics: Trends and Insights United Kingdom In the UK, cryptocurrencies are not accepted as legal tender but are also considered as property. When it comes to regulations the UK is very proactive, mandating cryptocurrencies to work within its existing financial framework under the June 2023, Financial Services and Markets Act. Moreso, Crypto businesses must comply with Know Your Customer (KYC), Anti-money Laundering AML, and Countering the Finance of Terrorism (CFT) requirements. For future regulations, a discussion paper (DP23/4) has been released about regulating stablecoins as a result of their growing use in crypto trading, lending, and borrowing. Unlike cryptocurrencies, which are more decentralized and risky, stablecoins offer more stability, making them appealing. The FCA aims to apply the same regulations to stablecoins as to other financial products, with adjustments to account for the unique risks of crypto. They are also working on new rules to prevent market abuse in crypto and stricter guidelines for social media crypto ads, particularly targeting ‘influencers’ and celebrity endorsements. Canada Canada has been proactive in crypto usage and regulations. White it is not the country’s legal tender, they can be used for daily transactions. On regulations, the country was the first to approve a Bitcoin exchange-traded fund (ETF). However, Cryptocurrency exchanges and dealers must register with provincial regulators. Canada classifies all crypto investment firms as money service businesses (MSBs) and requires them to register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Australia In Australia, Cryptocurrency exchanges are legal but must register with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and meet specific AML/CTF obligations. In 2019, the Australian Securities and Investments Commission (ASIC) introduced regulatory requirements for initial coin offerings (ICOs) and banned exchanges from offering privacy coins. In 2024, crypto users and exchanges can expect more regulations as the Australian government has announced plans to introduce a comprehensive regulatory framework with a draft set to come out soon. China China has taken a harsh stance on cryptocurrencies. In September 2021, the country banned all cryptocurrency transactions and mining activities. The People’s Bank of China (PBOC) prohibits crypto enterprises from operating in the country, stating that they facilitate public financing without approval. The position taken by the Chinese in 2021 caused major crypto sell-offs and forced exchanges to move to jurisdictions with favorable terms of business. While there are no signs of China lifting the ban on cryptocurrencies, some speculate that it could be around the corner. This is a result of the Chinese Central Bank working on the e-CNY digital currency and announcing pilot tests in 2021. Singapore Trading and exchanges are legal but regulated in Singapore making the island a crypto-friendly jurisdiction. The Monetary Authority of Singapore (MAS) licenses and regulates exchanges under the Payment Services Act (PSA). While the country is crypto-friendly, MAS in 2022, issued guidance warning digital payment token (DPT) providers against advertising their services to the public. India India’s stance on cryptocurrencies remains ambiguous. While the country has not officially legalized or banned cryptocurrencies, it has imposed a 30% tax on all crypto investments and a 1% tax deduction at source (TDS) on crypto trades. The Indian government has been considering a bill that could potentially prohibit all private cryptocurrencies, but it has not been voted on yet. Japan Similar to Singapore, Japan is quite favorable to crypto trading and exchanges. The country recognizes cryptocurrencies as legal property under the Payment Services Act (PSA) and Crypto exchanges must register with the Financial Services Agency (FSA) and comply with AML/CFT obligations. Japan established the Japanese Virtual Currency Exchange Association (JVCEA) in 2020, and all crypto exchanges are required to be members. In 2022, Japan announced plans to introduce remittance rules to prevent money laundering through cryptocurrency exchanges. This legislation by the FSA would likely mandate reports of suspicious activities by crypto service providers and require new security protocols. South Korea In 2023, South Korea’s National Assembly passed the Protection of Virtual Asset Users Act and officially appointed the Financial Services Commission as a regulator for virtual assets. This body determines what is legal or illegal. In 2017, the country banned the usage of private accounts to trade and imposed reporting of accounts held by exchanges on banks. The country requires these exchanges and other virtual asset service providers to register with the Korea Financial Intelligence Unit (KFIU) for the operation of exchanges. The future agenda of the South Korean government is to develop regulatory frameworks to balance innovation with consumer protection in the cryptocurrency space. Read Also: Top Cryptocurrency Regulations Every Investor Should Know Switzerland In Switzerland, cryptocurrencies are recognized as assets and are subject to the Swiss wealth tax. Cryptocurrency exchanges are also legal but must obtain a license from the Swiss Financial Market Supervisory Authority (FINMA) to operate. On the regulatory front, Switzerland introduced the