HashKey OTC has obtained a crucial Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), enabling its over-the-counter trading division to provide payment services without limitations. This license, granted on February 28, 2024, signifies a significant advancement for HashKey OTC, allowing it to extend its range of services to encompass digital payment tokens and cross-border transfers.
Prior to this license approval, HashKey OTC functioned under an exemption from the Payment Services Act 2019, which permitted operations related to digital payment tokens, including spot trading and on-off ramp trades. With the acquisition of the MPI license, HashKey OTC now operates within a more definitive regulatory framework, replacing the previous exemption.
The rigorous and detailed process of acquiring the MPI license from MAS underscores the stringent standards set to maintain the integrity of entities operating in the Singapore financial sector. MAS's emphasis on stringent criteria aims to uphold economic stability and protect consumers against potential risks.
In the dynamic landscape of Singapore's financial industry, 26 digital asset businesses, including prominent names like Coinbase and Sygnum, have been granted MPI licenses. Singapore's regulatory framework continues to evolve, focusing on maximizing the potential of blockchain technology while effectively managing risks associated with money laundering.
The issuance of the MPI license to HashKey OTC bolsters Singapore's image as a thriving crypto hub, signaling the country's commitment to nurturing a conducive environment for the digital assets market. The license serves as an invitation for more companies to establish their presence in Singapore's financial center, enhancing its competitiveness globally.
Other entities, such as Hex Trust, have also thrived within Singapore's regulatory environment, exemplified by the recent approval for an MPI license. Ripple's acquisition of a license in December further cements the growing recognition of digital assets within Singapore's financial ecosystem.
Despite the escalated scrutiny on digital payment token service providers in Singapore, the national risk assessment on terrorism financing points to a medium-high risk level. The Southeast Asian region shows room for improvement in the utilization of digital payment tokens, indicating a need for technological advancements and robust financial services, especially in areas affected by terrorism.
This comprehensive rewrite is based on information sourced from The Coin Republic and adheres to the guidelines provided without any social media links.
