HashKey, the operator behind one of Hong Kong’s licensed cryptocurrency exchanges, has received in-principle approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution (MPI) license. This license, obtained through its over-the-counter (OTC) trading arm Hashkey OTC, marks a significant step forward in the company’s expansion and compliance efforts. Announced on February 28, this development enables HashKey OTC to offer a range of digital payment token services, including spot trading of nearly 40 digital payment tokens, on/off ramp services, and large notional trades for institutional and accredited investors.
A Leap Towards Regulatory Compliance and Comprehensive Trading Solutions
This approval underscores HashKey’s commitment to adhering to regulatory standards and its goal of providing a fully regulated OTC trading solution for a variety of digital payment tokens. The MPI license removes transaction limits that were previously in place, such as the 3 million Singapore dollars ($2.2 million) cap for any single payment service and the 6 million SG$ ($4.4 million) monthly transaction ceiling for multiple payment services. This exemption does not apply to e-money account issuance and money-changing services, highlighting the tailored approach Singapore’s regulatory framework offers to different facets of the digital payment ecosystem.
Singapore’s Attractive Regulatory Framework Draws Major Crypto Players
Singapore’s clear and proactive regulatory environment continues to attract key players in the cryptocurrency space, including Coinbase, BitGo, and Ripple, all of which have recently secured MPI licenses. The country’s regulations are designed to foster growth and provide clarity within the crypto industry, making it an appealing hub for digital asset firms looking to expand internationally.
HashKey’s Growing Presence in Singapore
The MPI license for HashKey OTC follows the December 2023 issuance of a Capital Markets Services license to HashKey Capital Singapore Pte. Ltd., an affiliate company, allowing it to offer fund management services in Singapore. This series of regulatory approvals solidifies HashKey’s position in the Singaporean market, aligning with CEO Li Liang’s vision of offering a comprehensive and regulated OTC trading solution that meets the diverse needs of their clients.
Singapore’s commitment to creating a supportive environment for the crypto industry, combined with HashKey’s recent regulatory achievements, underscores the potential for further innovation and growth in the digital asset sector within the region.
