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Asia-based Crypto Exchange XREX Secures In-Principle Approval for Major Payment Institution License in Singapore

Hassan Shittu
Last updated: | 3 min read
Monetary Authority of Singapore
Source: AdobeStock / Richie Chan

On November 16, XREX, an Asia-based cryptocurrency exchange specializing in cross-border payments, achieved a significant milestone by receiving in-principle approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution (MPI) license. This license will empower XREX to provide digital payment token products and services in Singapore, solidifying its position as a compliant and regulated player in the digital asset space.

The Monetary Authority of Singapore (MAS) plays a crucial role in creating a progressive and robust regulatory framework, providing clarity and confidence for users engaging with digital assets and stablecoins in Singapore. XREX’s approval reflects its dedication to adhering to the highest regulatory standards and positions it among the approved digital asset entities by both Singaporean and Taiwanese regulators.

Operating under MAS’s regulation of digital payment token service providers, a DPTSP (Digital Payment Token Service Provider) is required to hold an MPI license to offer digital payment token services. XREX now joins an esteemed group of approved entities in Singapore, including major players such as Coinbase, DBS Vickers, Circle, Paxos, Ripple, and Revolut.

Christopher Chye, CEO of XREX Singapore, expressed appreciation for MAS through regulatory scrutiny, emphasizing Singapore’s commitment to attracting responsible actors in the digital asset industry. XREX Singapore plans to introduce cost-effective, secure, and fast domestic and cross-border payments for businesses in Singapore and emerging markets.

“This is great for Singapore and great for our industry as a whole. XREX is looking forward to introducing cheaper, safer, and faster domestic and cross-border payments for Singapore and emerging market businesses.”

Upon obtaining the full MPI license, XREX Singapore plans to extend the reach of its crypto-friendly escrow payment tool, BitCheck. This tool supports various forms of currencies, including fiat, stablecoins, and cryptocurrencies, enhancing the platform’s capabilities for users in the region.

XREX’s In-Principle Approval for MPI License in Singapore Paves the Way for Crypto-Friendly Payment Services

XREX’s approval aligns with its strategic objective of bridging the gap between blockchain finance and traditional finance. With this regulatory endorsement, XREX is well-positioned to enhance collaborations with major banks, credit card institutions, and payment service providers. The approval encompasses a comprehensive range of payment services, including account issuance, domestic and cross-border money transfers, merchant acquisition, e-money issuance, and digital payment token services.

Chye added:

“Serving as the headquarters for the Asia Pacific region, XREX Singapore will also turn its eye to its neighboring emerging markets, where access to USD liquidity may not always be easily within reach.”

XREX Singapore is slated to serve as the Asia Pacific headquarters for the group, signifying its pivotal role in driving the adoption of digital assets across the Asia-Pacific (APAC) region. The company aims to be a primary provider of innovative financial products, with a specific focus on delivering cost-effective, secure, and rapid domestic and cross-border payment solutions for businesses in Singapore and emerging markets.

 XREX Attains Regulatory Milestone as Sole Digital Asset Entity Approved by Singaporean and Taiwanese Regulators

In a historic achievement, XREX Group has emerged as the sole digital asset entity to receive regulatory approvals from both Singaporean and Taiwanese authorities for its virtual asset services. The company’s success underscores its commitment to navigating and meeting the regulatory standards of diverse jurisdictions, positioning itself as a key player in the cryptocurrency landscape.

Since the initiation of the licensing regime in January 2020, the Monetary Authority of Singapore (MAS) has witnessed a substantial number of Digital Payment Token Service Providers (DPTSPs) submitting applications for approval. However, out of these applications, fewer than 20 entities have been granted Digital Payment Token (DPT) licenses and in-principle approvals by MAS.

Singapore has established a reputation as a relatively crypto-friendly jurisdiction despite facing challenges involving crypto entities in the past year, such as the failures of Three Arrows Capital, Vauld, and Hodlnaut. The regulatory response from MAS suggests a commitment to engaging with crypto firms and fostering a secure environment within the country.

Recent instances of regulatory collaboration include the granting of a full Major Payment Institution (MPI) license to Coinbase by MAS, following in-principle approval late last year. Additionally, in June, Circle obtained an MPI license in Singapore. These developments signify an ongoing and constructive interaction between regulatory authorities and cryptocurrency companies in Singapore.