The Monetary Authority of Singapore (MAS) has granted in-principle approval to the Singapore subsidiary of OKX exchange, permitting it to function as a payments Institution, according to a Mar. 12 statement.

With this Major Payments Institution (MPI) license, OKX gains the authority to offer crypto and cross-border money transfer services within Singapore, marking a significant step for the exchange.

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.

‘Priority market’

Hong Fang, OKX’s president, said Singapore is a “priority market” for the exchange. According to Fang, MAS’s in-principle approval is a validation of their commitment and an opportunity to contribute to Singapore’s crypto ecosystem responsibly.

Mauricio Beugelmans, OKX’s Chief Legal Officer, further emphasized the importance of regulatory compliance to the exchange’s business strategy while expressing support for MAS’s comprehensive regulatory framework.

Meanwhile, this move aligns with OKX’s broader expansion strategy across various jurisdictions in Asia and the Middle East. Recently, the exchange obtained regulatory clearance to provide crypto trading services to retail investors in Dubai.

These expansions are expected to bolster OKX’s market share and sustain its momentum from last year, when it emerged as the third-largest centralized exchange with a 6.7% market share.

The exchange said its initial focus would be building a spot product before expanding its offering to other products. It added that its local team will be working to bring local banking connections to its customers soon.

Singapore’s growth

Over the past years, Singapore has emerged as a leading hub for digital assets in Asia and has attracted numerous crypto firms, including major players like Coinbase, BitGo, and Ripple, to its shores.

Market observers have attributed these institutions’ influx to the country’s proactive regulatory framework to provide clarity and foster the crypto industry’s growth.