HashKey OTC, the over-the-counter trading division of HashKey Group, has recently received a Major Payment Institution (MPI) license from Singapore’s regulatory authority, the Monetary Authority of Singapore (MAS). The MPI license allows for the unlimited provision of payment services, including services related to digital payment tokens and cross-border transfers, with no restrictions on transaction volumes. This development follows the in-principle approval that HashKey OTC received from the MAS on February 28, 2024. This is a significant step for HashKey OTC as it enables the firm to offer fully regulated digital payment services.
Obtaining an MPI license from the MAS involves a structured process to ensure that only qualified entities can operate within Singapore’s financial system. Previously, HashKey OTC operated under an exemption under the Payment Services Act 2019, allowing it to provide digital payment token services such as spot trading, on-off ramp trades, and large notional trades with quick settlement options. Other companies, such as Hex Trust and Ripple, have also obtained their own licenses from the MAS. In total, the MAS has issued MPI licenses to 26 digital asset businesses in Singapore, including well-known companies like Coinbase and Sygnum. This shows the growing importance of regulatory compliance in the crypto ecosystem.
In April, the MAS implemented new regulatory measures to enhance its oversight of cryptocurrencies. These measures were put in place to promote the beneficial use of blockchain technology while mitigating the risks of money laundering. Some of these regulatory changes have been in development for years and aim to provide clear guidelines on various aspects of the crypto ecosystem. Recently, Singapore increased the risk level for digital payment token service providers from “medium-low” to “medium-high” based on the latest terrorism financing national risk assessment. This adjustment reflects concerns about the potential role of digital payment tokens in financing terrorism, despite limited evidence of widespread use in Southeast Asia.
The MAS’ efforts to strengthen Singapore’s crypto ecosystem through new regulatory measures and increased oversight of cryptocurrencies are part of a broader strategy to promote innovation while mitigating risks. By issuing MPI licenses to qualified entities, such as HashKey OTC, the MAS aims to ensure that digital payment services are well-regulated and compliant with the country’s financial laws. The growing number of companies obtaining MPI licenses in Singapore, including prominent names in the industry, highlights the increasing importance of regulatory compliance in the global crypto market. Overall, these developments signal Singapore’s commitment to fostering a secure and thriving crypto industry in the region.
Overall, the issuance of the MPI license to HashKey OTC by the MAS represents a significant milestone for the company and underscores Singapore’s commitment to enhancing its regulatory framework for digital payment services. By obtaining an MPI license, HashKey OTC can now offer fully regulated digital payment services, including those related to digital payment tokens and cross-border transfers, without limitations on transaction volumes. This development aligns with the MAS’ goal of promoting innovation in the crypto sector while ensuring compliance with financial regulations. With the increasing number of companies obtaining MPI licenses in Singapore, the country is establishing itself as a key player in the global crypto market, providing a safe and regulated environment for businesses to operate.
