HashKey OTC received its MPI license following approval in principle from the Monetary Authority of Singapore (MAS) on February 28, 2024. Obtaining an MPI license requires a rigorous evaluation process by the regulatory authority.

This process allows only qualified and regulated entities to operate in Singapore’s financial system. This approval will increase HashKey OTC’s ability to provide a broader range of payment services internationally and enable the institution to conduct its financial operations more comprehensively.

Previously, HashKey OTC operated with an exemption under the Payment Services Act 2019 to provide Digital Payment Tokens (DPT) services.

This exemption allowed the firm to support services such as spot trading, entry-exit transactions and large nominal transactions, and to offer fast clearing options. However, obtaining the MPI license will significantly expand the scope and quality of services offered by HashKey OTC.

Following these developments, other companies are undergoing similar regulatory approval processes. For example, Hex Trust recently received approval in principle for an MPI license, and Ripple received its own license in December. The Monetary Authority of Singapore (MAS), Singapore’s central bank, has so far issued MPI licenses to a total of 26 digital asset businesses.

Important companies such as Coinbase and Sygnum are also included in this list. In April, the MAS increased its regulatory oversight over cryptocurrencies, aiming to promote the beneficial use of blockchain technology and reduce money laundering risks.

In recent years, regulatory changes regarding cryptocurrencies have been worked on in Singapore. The purpose of these changes is to provide clear and actionable guidelines on critical aspects of the crypto ecosystem.

Last month, Singapore raised the risk level for digital payment token (DPT) service providers from “medium-low” to “medium-high”. This change is detailed in the national risk assessment for the financing of terrorism and reflects concerns about the potential role of these services in the financing of terrorism.

However, the report noted that there is no concrete evidence of widespread use of digital payment tokens in Southeast Asia. Limited adoption in terrorism-prone regions can often be related to issues such as inadequate technological infrastructure, lack of financial services and unreliable internet access.

These factors make it difficult for digital payment tokens to be widely used in these regions, which is an important element shaping the impact of regulatory changes and overall developments in the industry.