Securities company and Crypto-custody provider, Propine, has graduated from the Monetary Authority of Singapore’s fintech regulatory sandbox program. It graduated from the program with a Capital Markets Services License and the go-ahead to begin full operations.
The securities services company based in Singapore for institutional customers was admitted to the MAS regulatory sandbox on Nov. 8, 2019. According to a post on the firm’s website, the company only took part in the program for over a year before being awarded permission to graduate on Jan. 7.
The country’s financial law dictates that an organization must have a Capital Markets Services License if it wants to do business regulated under Singapore’s Securities and Futures Act. After successfully completing the program, Propine achieved a CMS license and will currently start to roll out all its services including, trade settlement facilitation, digital-asset custody, asset servicing and services taking care of worldwide securities issuers among others.
Tuhina Singh, Propine CEO proposed that the clear regulatory structure offered by the MAS could assist in boosting organizational participation in cryptocurrency and tokenization stating:
“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.”
Sopnendu Mohanty, the chief fintech officer of the MAS, noted that the digital-asset sector is growing at a fast pace and that regulators have a responsibility to give legal safeguards to prevent the industry from failing.
Mohanty said, “The digital asset ecosystem, fueled 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.”
Mohanty noted that Propine’s custody service utilizes a dual-layer multi-signatory feature that is not traditional to any specific chain but it is somewhat a blockchain agnostic. The fintech executive stated that he hopes to see digital-asset custody solutions surface in Singapore and abroad soon.