HashKey's over-the-counter trading unit awarded Singapore's payment license

HashKey Group’s over-the-counter trading arm is the latest crypto firm awarded a payment license by the Monetary Authority of Singapore. The license, introduced under the Payment Services Act of 2019, enables companies to provide “digital payment token” services in the Southeast Asian city-state.  

“This significant achievement solidifies HashKey OTC's position as a leading provider of regulated OTC trading,” the firm wrote in a statement, adding it underscores its efforts to achieve regulatory compliance.

In February, HashKey was awarded in-principle approval for the Major Payment Institution license. It had previously operated under a regulatory exemption to provide spot trading, fiat onramps and settlement services.

HashKey Group, founded in 2018 in Hong Kong, is a financial services company that provides crypto services across Asia via its exchange, asset management, node operation, tokenization and NFT units. It also has offices in Singapore, Japan and Bermuda.

A growing crypto hub

Singapore has emerged as a leading global hub for cryptocurrencies. It is home to the much-anticipated TOKEN2049 conference and was one of the first nations to publish legislation and tax guidance specifically tailored to cryptocurrencies. 

The Payment Services Act regulates certain crypto trading and exchange services, though not the issuance of tokens. In 2020, the country became compliant with FATF’s so-called “Travel Rule,” which sets KYC and surveillance standards to prevent money laundering and terrorist financing. 

Some of the industry’s biggest brands, including Binance, Coinbase and Crypto.com, have headquarters or regional offices in the country. It recently scored second-highest in the World Bank’s Ease of Doing Business index and does not have a capital gains tax.