HashKey OTC Receives Major Payment Institution License from MAS
HashKey OTC, the over-the-counter trading division of HashKey Group, has secured a Major Payment Institution (MPI) license from Singapore’s Monetary Authority of Singapore (MAS). This license allows the firm to offer unlimited payment services, including those related to digital payment tokens and cross-border transfers, without restrictions on transaction volumes.
HashKey OTC’s License Achievement
This milestone follows HashKey OTC’s receipt of in-principle approval from MAS on February 28, 2024. The firm is excited about the new license, which will enable it to provide regulated digital payment token services.
License Granted to 26 Crypto Businesses in Singapore
The MAS issues MPI licenses through a strict process, ensuring that only qualified entities can operate in Singapore’s financial sector. Previously, HashKey OTC operated under an exemption from the Payment Services Act 2019, which permitted it to offer digital payment token (DPT) services, including spot trading and large trades with quick settlements.
Recently, Hex Trust obtained in-principle approval for an MPI license, and Ripple secured its own license in December. So far, the MAS has granted MPI licenses to 26 digital asset businesses, including prominent companies like Coinbase and Sygnum.
Singapore Enhances Crypto Regulation
In April, the MAS strengthened its regulatory measures for cryptocurrencies to improve blockchain technology use and combat money laundering. These changes, developed over several years, aim to clarify essential aspects of the crypto ecosystem.
The MAS recently increased the risk level for DPT service providers from “medium-low” to “medium-high.” This update reflects concerns about potential terrorism financing risks. Despite this, the report found no significant evidence of DPTs being widely used for terrorism in Southeast Asia. Limited adoption in high-risk areas may be due to poor technological infrastructure, such as unreliable financial services and internet access.
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