The Monetary Authority of Singapore (MAS) granted a Major Payment Institution (MPI) license to HashKey OTC. Hashkey OTC is the over-the-counter trading division of HashKey Group.

This license allows HashKey OTC to offer payment services without limitations, such as digital payment tokens and cross-border transfers. The MPI license is in-principle approval given on February 28, 2024.

HashKey OTC Secures Key Singapore Payment License

The MPI license is a crucial achievement for HashKey OTC. It means that the firm can conduct business without being limited by the number of transactions it conducts, enabling a broader range of services and higher market access.

Before this, HashKey OTC operated under an exemption provided under the Payment Services Act 2019. This exemption enabled them to provide digital payment token (DPT) services, including spot trading and on-off ramp trades. The MPI license now replaces this exemption, offering more regulatory certainty.

Singapore Grants MPI Licenses to 26 Firms

The process of getting the MPI license from MAS is systematic and very stringent. This process helps to ensure that only the proper entities can function within the Singapore financial system. MAS has set high standards to ensure its stable economic system and safeguard consumers.

As of now, Singapore has granted MPI licenses to 26 digital asset businesses. Some of the major names in the industry are Coinbase and Sygnum. The MAS is further improving the regulatory framework to leverage blockchain’s potential while managing the risks of money laundering.

In April, the MAS increased its scrutiny of cryptocurrencies. It aims to achieve innovation while ensuring security and consumer protection are not compromised. The legal framework has been developed to address key areas of the cryptocurrency industry and offer certain rules.

HashKey OTC’s License Boosts Singapore’s Crypto Hub

Market participants consider HashKey OTC’s MPI license a positive step. It underlines Singapore’s intention to develop a sustainable environment for the digital assets industry, which is likely to draw more companies to Singapore’s financial centre.

Other firms are also doing well in this regulatory environment. Hex Trust recently received an in-principle approval for an MPI license. Ripple also received its license in December, which proves that digital assets are becoming increasingly recognized in Singapore.

Singapore has increased the risk level for digital payment token service providers. The most recent national risk assessment of terrorism financing points to a medium-high risk level.

However, the report highlights that digital payment token use still needs to improve in Southeast Asia. Some of the factors that have been identified include a lack of modern technology and weak financial services in terrorism-affected regions. More evidence of their use in these regions needs to be provided.