South Korean Crypto Exchange Upbit Secures Singapore Regulatory Approval

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The global cryptocurrency landscape continues to evolve, with regulatory clarity becoming a cornerstone for sustainable growth. In a significant development, South Korean digital asset exchange Upbit has received in-principle approval from the Monetary Authority of Singapore (MAS), marking a pivotal step in its regional expansion strategy. This milestone positions Upbit as a key player in Southeast Asia’s burgeoning digital asset ecosystem.

Regulatory Milestone for Upbit Singapore

Upbit Singapore, the regional arm of the prominent South Korean exchange, announced it has obtained in-principle approval for a Major Payment Institution (MPI) licence under Singapore’s Payment Services Act. This regulatory green light allows the firm to legally provide Digital Payment Token (DPT) services to institutional clients, including family offices, private trusts, and high-net-worth investors.

The MPI licence is one of the most comprehensive authorizations offered by MAS, reflecting Upbit’s commitment to compliance and operational integrity. While the full licence is still pending, the in-principle approval signals strong confidence from regulators in Upbit’s risk management frameworks and business model.

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Strategic Expansion in a Growing Hub

Singapore has emerged as a preferred destination for crypto firms seeking a stable, innovation-friendly regulatory environment. Amid global market volatility and geopolitical uncertainty, institutional capital has increasingly flowed into the city-state, drawn by its robust legal infrastructure and pro-business policies.

Upbit’s decision to anchor its regional operations in Singapore aligns with broader industry trends. The Republic has become a hub for Web3 innovation, attracting top-tier talent and capital. With approximately 80 employees across Southeast Asia—20 based in Singapore—Upbit is strategically positioned to serve both institutional and retail markets.

Despite MAS’s cautionary stance on retail crypto trading due to its speculative nature and high risk, Upbit Singapore continues to serve individual investors while emphasizing education and responsible engagement.

Building Institutional-Grade Infrastructure

With regulatory validation underway, Upbit is ramping up investment in core capabilities. Raks Sondhi, Chief Operating Officer at Upbit Singapore, revealed plans to double staffing in compliance, legal, and institutional business development teams.

“Regulatory approval is not just a checkbox—it’s a foundation for scalable, trustworthy growth,” said Mr. Sondhi.

This expansion underscores a shift from stealth operations to active market participation. Once the full licence is granted, Upbit intends to:

Such moves are designed to meet rising demand from professional investors seeking secure, regulated access to digital assets.

Innovation Beyond Trading: The VerifyVASP Advantage

Beyond exchange services, Upbit is advancing blockchain infrastructure through VerifyVASP, a Singapore-based entity under Upbit APAC. As one of the world’s largest Travel Rule solution providers, VerifyVASP enables compliant data sharing between virtual asset service providers (VASPs), in line with Financial Action Task Force (FATF) recommendations.

With over US$100 billion in cumulative transaction value processed, VerifyVASP plays a critical role in combating money laundering and terrorism financing—key concerns for global regulators. Its widespread adoption highlights Upbit’s dual focus: delivering trading innovation while strengthening ecosystem-wide security and transparency.

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Navigating the Crypto Winter with Resilience

While Singapore has gained momentum in the Web3 race, industry leaders acknowledge the ongoing “crypto winter”—a period marked by market downturns, reduced valuations, and workforce contractions. Yet, Upbit’s founder and CEO, Alex Kim, remains focused on long-term value creation.

“We’ve been building essential infrastructure and fostering partnerships centered on sustainable innovation,” said Kim. “This isn’t about short-term gains—it’s about laying the groundwork for the next cycle of growth.”

Upbit’s approach reflects a maturing industry: prioritizing compliance, operational resilience, and ecosystem development over rapid expansion.

Competitive Landscape: Who Else Holds a Full MAS Licence?

Upbit joins an elite group of crypto firms that have secured or are progressing toward full DPT licensing under MAS. Over a dozen companies now hold full licences, including:

These approvals highlight MAS’s rigorous but supportive regulatory framework—one that balances innovation with investor protection.

Frequently Asked Questions (FAQ)

Q: What does in-principle approval mean for Upbit Singapore?
A: It means MAS has provisionally accepted Upbit’s application for a Major Payment Institution licence. The exchange can continue operating under certain conditions while finalizing compliance requirements for full licensing.

Q: Can retail investors use Upbit in Singapore?
A: Yes, but with caution. While Upbit serves retail clients, MAS has repeatedly warned that crypto trading is highly risky and unsuitable for most individual investors due to price volatility.

Q: What is the Travel Rule and why does it matter?
A: The Travel Rule, established by FATF, requires VASPs to share sender and recipient information during transactions. It enhances transparency and helps prevent illicit financial flows—critical for regulatory compliance.

Q: How does VerifyVASP support crypto regulation?
A: VerifyVASP provides a secure platform for VASPs to exchange customer data in compliance with the Travel Rule. Its global network strengthens trust and interoperability across exchanges and custodians.

Q: When will Upbit exit stealth mode in Singapore?
A: The official launch will occur after receiving the full MPI licence from MAS. At that point, Upbit plans to expand its digital asset offerings and institutional services.

Q: Is Singapore becoming a crypto hub?
A: Yes. With clear regulations, strong enforcement, and support for blockchain innovation, Singapore has positioned itself as a leading global hub for digital assets and Web3 development.

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Conclusion: A New Chapter for Upbit in Asia

Upbit’s regulatory progress in Singapore reflects a broader shift in the cryptocurrency industry—from speculative ventures to regulated, institution-ready platforms. By securing in-principle approval, investing in compliance, and advancing critical infrastructure like VerifyVASP, Upbit is building a resilient foundation for long-term success.

As the digital asset ecosystem matures, firms that prioritize security, transparency, and regulatory alignment will lead the next wave of innovation. With Singapore as its regional springboard, Upbit is poised to play a central role in shaping Asia’s crypto future.

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