The HashKey Group has reached a significant regulatory milestone, with its over-the-counter (OTC) trading division being officially awarded a Major Payment Institution (MPI) license by the Monetary Authority of Singapore (MAS). This license, introduced under the country’s forward-thinking Payment Services Act (PSA) of 2019, authorizes the firm to legally offer a range of digital payment token services within the regulated financial hub of Singapore.
This achievement strengthens HashKey OTC’s standing as a leading compliant provider of institutional-grade digital asset services and highlights the company’s ongoing commitment to operating within recognized regulatory frameworks. The approval follows an in-principle endorsement received earlier this year, which allowed the division to operate under an exemption while offering services such as spot trading, fiat on-ramps, and settlement.
Understanding the Payment Services Act
Singapore’s Payment Services Act, enacted in 2019, provides a comprehensive regulatory structure for payment services, including those dealing with digital payment tokens (DPTs). The legislation was designed to encourage innovation while ensuring consumer protection, anti-money laundering (AML) compliance, and overall financial stability.
Firms operating under this license are permitted to conduct several regulated activities, including:
- Domestic and cross-border money transfer services
- Merchant acquisition services
- Digital payment token services
A key aspect of the regulatory environment is Singapore’s early adoption of the Financial Action Task Force’s (FATF) “Travel Rule,” which mandates that virtual asset service providers (VASPs) share certain customer information during transactions to prevent illicit activities.
HashKey Group’s Expanding Footprint
Established in 2018 and headquartered in Hong Kong, HashKey Group is a diversified financial services firm with a strong focus on digital assets. Through its various business units—including exchange operations, asset management, node services, and tokenization—it offers a wide array of crypto-related services across Asia.
The group maintains offices in several strategic locations, including Singapore, Japan, and Bermuda, allowing it to serve a global client base while navigating regional regulatory requirements. The licensing of its OTC desk in Singapore represents a key step in its broader strategy to expand its institutional offerings in major financial markets.
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Singapore as a Global Crypto Hub
Singapore has firmly established itself as a leading global center for cryptocurrency and blockchain innovation. The city-state combines a robust legal framework, clear tax guidelines, and a proactive stance on fintech with a highly favorable business environment.
Several factors contribute to its attractiveness to crypto businesses:
- Clear Regulations: The PSA provides legal clarity for digital asset businesses.
- Tax Efficiency: There is no capital gains tax, which is beneficial for trading and investment firms.
- Business-Friendly Climate: Singapore consistently ranks among the top countries in the world for ease of doing business.
- Talent and Infrastructure: It hosts a deep pool of tech talent and world-class financial infrastructure.
Major global crypto exchanges and service providers, including Coinbase, Crypto.com, and Binance, have established significant regional offices in Singapore. The city also hosts major industry events, reinforcing its status as a vital meeting point for the global Web3 community.
The Value of Regulatory Compliance
For a crypto business, obtaining a license like the MPI is more than just a legal requirement—it’s a powerful signal to the market. It demonstrates a commitment to security, operational integrity, and long-term legitimacy.
Licensed entities are subject to ongoing oversight, which includes stringent AML and counter-financing of terrorism (CFT) checks. This creates a safer environment for users and builds trust with banking partners and institutional investors who require regulatory certainty before engaging with digital asset platforms.
Operating within a regulated framework allows companies to offer their users greater protection and access to a wider range of integrated financial services.
Frequently Asked Questions
What is a Major Payment Institution (MPI) license?
An MPI license is issued by the Monetary Authority of Singapore under the Payment Services Act. It allows companies to provide specific payment services, including digital payment token services, which cover the buying, selling, and exchange of cryptocurrencies.
Why is Singapore considered a crypto-friendly country?
Singapore is considered crypto-friendly due to its clear regulatory approach, the absence of capital gains tax, and its strong support for financial technology innovation. The government aims to foster a responsible and progressive ecosystem for digital assets.
What are the benefits of using a licensed OTC trading desk?
Licensed OTC desks offer security, compliance, and reliability for executing large trades. They provide personalized service, better pricing for bulk orders, and reduce the risk of market slippage, all within a regulated environment that protects client assets.
How does the PSA help protect consumers?
The PSA mandates that licensed payment institutions meet strict capital requirements, implement robust risk management systems, and comply with AML/CFT regulations. This oversight helps protect consumers from fraud and ensures the solvency of service providers.
Does this license allow HashKey to offer services globally?
The MPI license specifically authorizes HashKey OTC to provide its services in Singapore. To operate in other jurisdictions, the company must comply with the local regulatory requirements of each country.
What is the 'Travel Rule' that Singapore has implemented?
The Travel Rule is an international standard set by the FATF that requires VASPs to share identifying information about the originator and beneficiary of transactions above a certain threshold. This helps authorities track and prevent money laundering and other financial crimes.