Singapore grants HashKey OTC in-principle approval for major payment institution license

HashKey, the operator of one of Hong Kong’s licensed crypto exchanges, secured an in-principle approval from Singapore’s leading financial regulator, the Monetary Authority of Singapore (MAS), for a Major Payment Institution (MPI) license via its over-the-counter trading arm, Hashkey OTC, according to a Feb. 28 statement shared with CryptoSlate.

The MPI license empowers HashKey OTC to offer digital payment token services, encompassing spot trading of nearly 40 digital payment tokens with robust liquidity, on/off ramp services, and facilitation of large notional trades to institutional and accredited investors.

According to the firm, this development reflects its commitment to regulatory compliance and its endeavor to deliver a comprehensive and regulated OTC trading solution supporting diverse digital payment tokens.

The MAS guidelines for MPI-licensed entities waive the transaction limits of 3 million Singapore dollars ($2.2 million) for any payment service and the 6 million SG$ ($4.4 million) monthly transaction cap for two or more payment services, excluding e-money account issuance and money-changing services.

HashKey’s CEO, Li Liang, emphasized the company’s focus on regulatory compliance and expressed satisfaction with the in-principle approval as it brings them closer to their vision of offering a regulated OTC trading solution.

“Regulatory compliance has always been a top priority for us. With this in-principle approval, we’re pleased to move a step closer to our vision of providing a comprehensive and regulated OTC trading solution that supports a wide range of digital payment tokens and fiat currencies for our clients,” Liang said.

Recently, major players, such as Coinbase, BitGo, and Ripple, secured MPI licenses in Singapore. These institutions are drawn by the country’s proactive regulatory framework aimed at providing clarity and fostering the crypto industry’s growth.

This regulatory environment has positioned it as a preferred destination for digital asset firms seeking international expansion opportunities.

Of note, HashKey OTC’s MPI license follows the issuance of a Capital Markets Services license to its affiliate, HashKey Capital Singapore Pte. Ltd., in December 2023. This allows the company to provide fund management services in the country.

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