HashKey OTC Secures Major Payment Institution License from Singapore’s MAS

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

August 2, 2024

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HashKey OTC, the over-the-counter trading division of HashKey Group, has received a Major Payment Institution (MPI) license from Singapore’s regulatory authority.

A 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 arm received in-principle approval from the MAS on Feb. 28, 2024.

🚨 HashKey OTC Secures Major Payment Institution Licence from MAS 🚨

We’re thrilled to announce that HashKey OTC has been granted the Major Payment Institution licence from the Monetary Authority of Singapore (MAS), enabling us to offer fully regulated digital payment token…

— HashKey OTC (@HashKeyOTC) August 2, 2024

License Granted to 26 Crypto Businesses in Singapore

Obtaining an MPI license from the Monetary Authority of Singapore (MAS) involves a structured process. This ensures that only qualified entities can operate within Singapore’s financial system.

Previously, HashKey OTC operated with an exemption under the Payment Services Act 2019, which allowed it to provide digital payment token (DPT) services. This enabled the firm to support spot trading, on-off ramp trades, and large notional trades with quick settlement options.

Hex Trust recently received in-principle approval for a MP license. In December, Ripple obtained its own license.

Singapore’s central bank, the Monetary Authority of Singapore (MAS), has issued MPI licenses to a total of 26 digital asset businesses so far. This list includes prominent companies like Coinbase and Sygnum.

Singapore Strengthens Crypto Ecosystem with New Regulatory Measures

In April, the MAS enhanced its regulatory oversight of cryptocurrencies. This was done to promote the beneficial use of blockchain technology and mitigate the risks of money laundering.

Several of these regulatory changes have been in the works for years. They aim to provide clear guidelines on crucial aspects of the crypto 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 terrorism financing national risk assessment, reflects concerns about their potential role in financing terrorism.

Despite this adjustment, the report acknowledged that there is no solid evidence of widespread use of digital payment tokens in Southeast Asia. The limited adoption in terrorism-prone areas could be due to poor technological infrastructure, including inadequate financial services and unreliable internet access.