Hex Trust, a depository for digital assets, is the latest to receive approval for a major payment institution (MPI) license from the Monetary Authority of Singapore (MAS). The crypto depository, which targets protocols, foundations and financial institutions, has a dedicated facility in Singapore starting in 2020. With the approval of the new license, the company is seeking to expand its services in the city-state.
According to a company statement, the approval will allow Hex Trust to offer “digital payment token (DPT) services” in Singapore. This means that Singapore customers can enjoy “deposit and over-the-counter DPT trading.”
“In principle, the approval of this license is supported by Hex Trust’s long-standing commitment to regulatory compliance and operational excellence, as well as to Singapore,” said Calvin Shen, CEO of Hex Trust.
Last month, the company obtained an additional Virtual Asset Service Provider (VASP) license from the Virtual Assets Regulatory Authority (VARA) in Dubai. Hex Trust is focusing on cryptocurrency jurisdictions to expand its digital asset solutions.
Hex Trust’s MAS license approval meets growing institutional demand
The company’s expansion into Singapore is in line with the country’s supportive crypto environment, thanks to a robust regulatory framework.
According to Hex Trust, there is a growing demand among institutional clients for sophisticated and compliant digital asset management solutions. This is especially true in regions experiencing rapid fintech growth.
“The Monetary Authority of Singapore adheres to strict regulatory standards that balance fostering innovation with ensuring consumer protection,” – Alessio Quaglini, CEO of Hex Trust, said.
Although Singapore’s crypto environment is fresh and nascent, the country currently has no plans to allow cryptocurrency listings such as cryptocurrency exchange-traded funds (ETFs). The CEO of the Singapore Exchange (SGX) recently said that conditions are “not ripe” for the introduction of such products.
In addition, MAS also stated in January that it would not approve bitcoin ETFs for retail investors in Singapore.
What’s more, the country has also tightened regulations on anti-money laundering (AML) measures covering cryptocurrency players. These measures were introduced after Singapore grappled with a recent major criminal scandal. The AML measures obliged virtual service providers in Singapore to strictly adhere to them.
