In-Principle MPI License Granted to Crypto Custodian Hex Trust by Singapore MAS 🇸🇬

Unlocking Opportunities: Hex Trust Receives Major Payment Institution License

Hex Trust, a reputable digital asset custodian, has achieved a significant milestone by securing the in-principle approval for a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This approval marks a crucial step in the company’s mission to enhance its presence and services in Singapore’s dynamic fintech ecosystem.

Expanding Horizons in Singapore

Hex Trust has been catering to protocols, foundations, and financial institutions since its inception in Singapore back in 2020.
The recent approval of the MPI license paves the way for the company to broaden its offerings within the city-state, thereby extending its reach and impact in the region.
With this strategic move, Hex Trust aims to provide digital payment token (DPT) services to its Singaporean clients, including custody and over-the-counter (OTC) trading of DPTs.

Commitment to Compliance and Excellence

The issuance of the MPI license underscores Hex Trust’s unwavering dedication to regulatory compliance and operational excellence, as well as its sustained commitment to the Singapore market. Calvin Shen, the Managing Director at Hex Trust, emphasized the company’s adherence to stringent standards and its positive outlook on Singapore’s regulatory landscape.

Fostering Institutional Demand

Hex Trust’s decision to expand its operations into Singapore reflects the rising demand among institutional clients for advanced and compliant digital asset management solutions.
The company’s CEO, Alessio Quaglini, acknowledged Singapore’s robust regulatory environment, which strikes a balance between encouraging innovation and safeguarding consumer interests.

Singapore’s Evolving Crypto Landscape

Despite being a relatively new player in the crypto space, Singapore has been exploring avenues for crypto offerings, such as spot crypto exchange-traded funds (ETFs).
However, the Singapore Exchange (SGX) CEO indicated that the current conditions may not be conducive for launching such products at this time.
Moreover, MAS recently announced its decision not to approve spot Bitcoin ETFs for retail investors in Singapore, underlining its cautious approach towards crypto investments.

Strengthening Anti-Money Laundering Measures

In response to escalating concerns about money laundering in the crypto sector, Singapore has implemented stricter regulations to enhance anti-money laundering (AML) controls for cryptocurrency service providers.

These measures were reinforced following a significant criminal investigation, underscoring the government’s commitment to combat financial crimes effectively.
Crypto custodial service providers in Singapore are now required to adhere strictly to these AML measures to prevent illicit activities within the digital asset ecosystem.

Hot Take: Nurturing Compliance and Innovation in Singapore

As the crypto landscape continues to evolve, Hex Trust’s successful acquisition of the MPI license signifies a pivotal moment in its journey towards driving compliance, innovation, and growth in Singapore’s burgeoning digital asset market. By staying true to its commitment to regulatory excellence and operational integrity, Hex Trust is well-positioned to meet the evolving needs of institutional clients and contribute to the overall maturation of the crypto industry in Singapore and beyond.