As the crypto industry continues to mature, it is becoming increasingly regulated across the globe. This year, several regions have introduced new crypto regulations and actively sought to clarify crypto licensing within their jurisdictions. One notable example is the approval of the long-awaited European Union's crypto-assets framework,referred to as the Markets in Crypto Assets Regulation (MiCA). It is expected to be enforced by the second half of 2024, and will “support market integrity and financial stability by regulating public offers of crypto-assets and by ensuring consumers are better informed about their associated risks.”
In light of these regulatory developments, Bake has been actively working on obtaining the necessary licenses and authorizations to ensure compliance with relevant laws and regulations.
This blog update will provide an overview of Bake's licensing plan.
European Union Licensing Update
Bake has an existing European entity registered under Lithuanian anti-money laundering law. Bake’s European entity will transition into a licensed/authorized entity under MiCA, to be passported throughout the EU. Our Compliance team has already begun an impact assessment on MiCA to ensure full compliance with the new regulation.
Singapore Licensing Update
In Singapore, Bake has been actively engaged in discussions with the Monetary Authority of Singapore (MAS), the local financial regulatory authority, in pursuit of obtaining the appropriate license to operate in Singapore.
We are pleased to note that MAS has recently published a consultation paper outlining proposed amendments to operationalize the Payment Services (Amendment) Act 2021. These amendments aim to broaden the existing digital assets licensing regime, which currently focuses on exchange activities, to encompass custodial and agency-related activities within this year.
Given that Bake does not operate as an exchange platform, we have strategically opted to await the introduction of the new digital assets custody license. This decision is aimed at bolstering customer protection while preserving our business's agility and adaptability.
We are committed to working closely with MAS and adhering to their regulatory framework as we continue to provide innovative financial solutions to our customers. This move aligns with our dedication to maintaining the highest standards of compliance and security in the rapidly evolving digital assets landscape in Singapore.
Global Licensing Efforts
Globally, Bake is in the midst of discussions with relevant regulators and is actively monitoring crypto license developments closely in other key jurisdictions. We will provide updates as and when there are material developments in our licensing plan.
Robust Compliance and Security Programs
Bake has put in place robust compliance programs to ensure adherence to anti-money laundering, asset safeguarding, and consumer protection laws and regulations. We want to assure our customers that their assets are safe and protected, and can be verified at bake.io/proof-of-reserve.
As the crypto industry evolves and adapts to the changing regulatory landscape, we will remain committed to our fundamental principles of trust and transparency, and will continue to offer secure, compliant, and transparent services to our customers.
Follow our content to be kept up-to-date of our licensing progress and any other relevant developments in the world of crypto regulations.