HashKey, the operator of a licensed crypto exchange in Hong Kong, has received preliminary approval from Singapore's Monetary Authority (MAS) for a Major Payment Institution (MPI) license for its over-the-counter trading arm, Hashkey OTC. This license enables HashKey OTC to provide digital payment token services, including spot trading for nearly 40 tokens with strong liquidity, on/off ramp services, and support for large notional trades to institutional and accredited investors.

This development underscores HashKey's commitment to regulatory compliance and its goal of offering a comprehensive and regulated OTC trading solution for various digital payment tokens. The MAS guidelines for MPI-licensed entities waive transaction limits, allowing flexibility in conducting payment services.

HashKey's CEO, Li Liang, highlighted the company's dedication to regulatory compliance and expressed satisfaction with the in-principle approval, stating that it brings them closer to their vision of providing a regulated OTC trading solution.

Several major players, including Coinbase, BitGo, and Ripple, have also secured MPI licenses in Singapore, attracted by the country's proactive regulatory framework aimed at fostering the growth of the crypto industry. This regulatory environment has positioned Singapore as an attractive destination for digital asset firms seeking international expansion opportunities.

HashKey OTC's MPI license follows the issuance of a Capital Markets Services license to its affiliate, HashKey Capital Singapore Pte. Ltd., in December 2023, allowing the company to provide fund management services in the country.