Hex Trust Wins In-Principle Approval From Singapore's MAS for Major Payment Institution License

Crypto custodian Hex Trust has received in-principle approval (IPA) from the Monetary Authority of Singapore (MAS) for a Major Payment Institution (MPI) license.

The license allows firms to provide digital payment tokens and cross-border money transfer services in Singapore.

Alessio Quaglini, the CEO and co-founder of Hex Trust, said that the space is becoming less accommodating for crypto entities operating without a license.

"Companies, at a certain point, very soon, will really need to make a choice. Do I want to be on the white part of the spectrum, in the right, obtain all the licenses, and operate a completely regulated business? Or do I want to be on the other side of the spectrum, outside of regulation?" he questioned.

Hex Trust's quest to obtain an MAS license began in 2020. "The commitment for us is clear. We want to be on the right side of the spectrum. We are committed. We want to be compliant. We want to get the licenses in the key jurisdictions," Quanglini said.

The firm recently obtained a full license in Dubai from Dubai's Virtual Assets Regulatory Authority (VARA).

“Hex Trust is fully committed to expanding into the Middle East and sees enormous potential for digital asset growth given the progressive regulations, welcoming governments, and thriving crypto ecosystem in the region," Filippo Buzzi, Hex Trust’s MENA regional director, said at the time.

Recently, both StraitsX and XTransfer secured licenses from MAS that will significantly enhance their digital payment offerings.

StraitsX, a prominent player in the digital asset space, received a full suite of Major Payment Institution (MPI) licenses. XTransfer, on the other hand, received an IPA for an MPI license, the company said on Tuesday.

Earlier this year, OKX also received an IPA for an MPI licence in Singapore. The development underscores the growing importance of regulatory compliance in the cryptocurrency industry and OKX's dedication to adhering to regulatory frameworks in various jurisdictions.

HashKey OTC was also granted an IPA for an MPI licence by MAS in March. The company said it will focus on providing regulatory-compliant digital asset trading services to accredited and institutional investors.

The firm offers services to institutional and accredited investors, including spot trading, on/off ramp services, fast settlement, and communication services.