Singapore MAS Grants In-Principle MPI License to Crypto Custodian Hex Trust

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July 24, 2024 01:23 EDT

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Hex Trust, a digital asset custodian, has become the latest to receive the in-principle approval for a Major Payment Institution (MPI) license, from the Monetary Authority of Singapore (MAS).

Hex Trust receives in-principle approval 🎉 for Major Payment Institution (MPI) License from the Monetary Authority of Singapore (@MAS_sg), strengthening its presence in the city-state's vibrant fintech ecosystem 🇸🇬.

Read more: https://t.co/nqAnSTF8Pv pic.twitter.com/OcLhL2FRw8

— Hex Trust (@Hex_Trust) July 24, 2024

The crypto custodian, that targets protocols, foundations and financial institutions, has a dedicated establishment in Singapore since 2020. With the new license approval, the company seeks to expand its services in the city-state.

Per the company statement, the approval would enable Hex Trust to offer “digital payment token (DPT) services” in Singapore. This means that Singaporean clients can enjoy the “custody and OTC trading of DPTs.”

“The in-principle approval of this license is underpinned by Hex Trust’s long-standing commitment to compliance and operational excellence, and to Singapore,” said Calvin Shen, MD at Hex Trust.

Last month, the company obtained an additional Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA). Hex Trust has been targeting crypto-centric jurisdictions to expand its digital asset solutions.

Hex Trust’s MAS License Approval Caters Growing Institutional Demand

The firm’s expansion into Singapore aligns with the island nation’s supportive crypto environment, thanks to its robust regulatory framework.

According to Hex Trust, there is a growing demand amongst institutional clients for sophisticated and compliant digital asset management solutions. This is particularly in regions experiencing rapid fintech development.

“The Monetary Authority of Singapore upholds rigorous regulatory standards that balance fostering innovation with ensuring consumer protection,” said Alessio Quaglini, CEO of Hex Trust.

Though the crypto environment in Singapore is fresh and nascent, the country is currently not having any plans to allow for crypto listings such as spot crypto exchange-traded funds (ETFs). Singapore Exchange’s (SGX) CEO said recently that the conditions are “not ripe” to launch such products.

Additionally, MAS also said in January that it would not approve spot Bitcoin ETFs to retail investors in Singapore.

Further, the nation has also tightened rules on anti-money laundering (AML) measures covering cryptocurrency players. The measures came after Singapore struggled a recent large criminal bust. The AML measures mandated crypto custodial service providers in Singapore to strictly comply with it.