HashKey OTC, the OTC trading division of HashKey Group, has received a Major Payment Institution (MPI) license from the Singaporean regulator.
The Major Payment Institution (MPI) license allows for the unlimited provision of payment services. This includes services related to digital payment tokens and cross-border transfers, with no restrictions on transaction volumes. This development comes after the OTC division received preliminary approval from MAS on February 28, 2024.
26 crypto companies receive licenses in Singapore
Obtaining an MPI license from the Monetary Authority of Singapore (MAS) involves a structured process. It ensures that only qualified entities can operate in Singapore’s financial system.
Previously, HashKey OTC operated under an exception under the Payment Services Act 2019, which allowed it to provide digital payment token (DPT) services. This enabled the company to handle spot trading, on-off ramp transactions and large nominal transactions with fast settlement options.
Hex Trust recently received preliminary approval for its MP license. And in December, Ripple received its own license. Singapore’s central bank, the Monetary Authority of Singapore (MAS), has so far issued MPI licenses to a total of 26 digital asset companies. The list includes such well-known companies as Coinbase and Sygnum.
Singapore strengthens cryptocurrency ecosystem with new regulatory measures
In April, MAS strengthened regulatory oversight of cryptocurrencies. This was aimed at promoting the beneficial use of blockchain technology and reducing the risk of money laundering. Several of these regulatory changes had been in the pipeline for years. They aim to provide clear guidance on key aspects of the cryptocurrency ecosystem.
Early last month, Singapore increased the risk level for digital payment token (DPT) service providers from “medium-low” to “medium-high.” This change, detailed in the latest National Terrorist Financing Risk Assessment, reflects concerns about their potential role in terrorist financing.
Despite this change, the report confirmed that there is no solid evidence of widespread use of digital payment tokens in Southeast Asia. Limited adoption in terrorism-prone areas may be due to poor technological infrastructure, including inadequate financial services and unreliable Internet access.
