HashKey OTC Secures Major Payment Institution License in Singapore

Introduction

HashKey OTC, the over-the-counter trading arm of HashKey Group, has achieved a significant milestone by securing a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). Announced on August 2, 2024, this license allows HashKey OTC to expand its digital payment token (DPT) services under the Payment Services Act 2019, enhancing its service capabilities and market reach.

Expanded Service Capabilities

The MPI license authorizes HashKey OTC to offer a comprehensive range of regulated trading services for digital payment tokens. Previously, HashKey OTC operated under an exemption, providing services like spot trading and large transactions with quick settlements. With the new MPI license, the company can now offer additional services, including unrestricted cross-border transfers, significantly enhancing its operational capabilities.

CEO's Perspective

Li Liang, CEO of HashKey OTC, highlighted the importance of the new license, stating that it positions the company to provide a broader suite of regulated trading services. Although specific new services have not been detailed yet, the license marks a significant step forward in HashKey OTC’s ability to serve its clients better.

Regulatory Context and Industry Impact

The MPI license is a crucial part of Singapore’s regulatory framework for overseeing digital asset businesses. To date, the MAS has issued MPI licenses to 26 companies in the cryptocurrency sector, including major players like Coinbase and Ripple. This regulatory framework ensures that only qualified entities operate within Singapore’s financial system, fostering a secure environment for digital asset transactions.

Heightened Scrutiny by MAS

Recently, the MAS has increased its scrutiny of digital payment token services, raising their risk profile from “medium-low” to “medium-high.” This adjustment reflects growing concerns about potential misuse while recognizing that concrete evidence of such misuse remains scarce.

Strategic Partnerships Strengthen Market Position

HashKey Group has been actively forming strategic partnerships to strengthen its market position and expand its service offerings. Here are some notable collaborations:

Partnership with Solidus Labs

Earlier this year, HashKey Global announced a partnership with Solidus Labs, a leader in crypto-native compliance and security. This collaboration aims to enhance HashKey Global’s surveillance capabilities across its spot and derivatives markets. Solidus Labs’ technology will provide advanced trade monitoring and real-time alerting to detect and address suspicious activities effectively.

Collaboration with TON Foundation

HashKey Group has also partnered with the TON Foundation to enhance the integration of cryptocurrency and fiat services across the Asia-Pacific region. This collaboration aims to deliver streamlined on- and off-ramping solutions for users of the TON blockchain and the Telegram messaging app.

Teaming Up with Aptos Foundation

Most recently, HashKey Cloud teamed up with the Aptos Foundation to advance blockchain application development. This partnership leverages HashKey’s decentralized identity solution, HashKey DID, which integrates multi-chain capabilities, smart contracts, NFTs, and privacy protection. The collaboration aims to enhance identity verification across platforms, offering users more control and security over their digital identities.

Conclusion

Securing the MPI license from MAS marks a significant achievement for HashKey OTC, enabling it to offer a broader range of regulated trading services and enhancing its operational capabilities. Combined with strategic partnerships, HashKey Group is well-positioned to strengthen its market presence and offer innovative solutions in the competitive digital asset market.

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