HashKey Technology Services, the OTC trading arm of HashKey Group, reached a significant milestone as it applied for a Major Payments License (MPI) from the Monetary Authority of Singapore (MAS) on February 28. This application seeks to secure in-principle approval for offering digital fiat currencies and crypto services, marking a pivotal step towards regulatory compliance and expansion.
Expressing optimism about this development, Liang Li, CEO of HashKey OTC, highlighted the significance of the in-principle approval. Li stated, “With this in-principle approval, we are pleased to take a step closer to providing a comprehensive and regulated OTC trading solution that supports a wide range of digital payment tokens and fiat currencies."
HashKey OTC presently operates under a licensing exemption in Singapore, offering spot trading services for 40 digital assets to accredited investors and financial institutions. Their services encompass liquidity support, fiat-to-crypto on-ramp facilities, and large-scale notional trading. In December 2023, MAS granted HashKey OTC a capital markets services license, solidifying its position within the regulatory framework.
MPI-licensed entities are empowered to conduct payment services without being bound by the S$3 million (US$2.2 million) transaction limit. Additionally, they are exempted from the S$6 million (US$4.4 million) monthly transaction limit for multiple payment services, including e-money account issuance and currency exchange services.
Operating one of the two licensed cryptocurrency exchanges in Hong Kong alongside OSL Exchange, HashKey Group has emerged as a prominent player in the digital asset ecosystem. The company's recent achievement of unicorn status, following a $100 million Series A funding round, underscores its growing influence and market presence.
In an interview with Chinese media Caixin, HashKey Chief Operating Officer Livio Weng revealed plans for ten companies to launch spot Bitcoin exchange-traded funds in Hong Kong. This initiative follows approval from the U.S. Securities and Exchange Commission, signaling a broader trend towards cryptocurrency adoption and regulatory acceptance.
