- The over-the-counter trading arm of HashKey Group is the latest institution to receive a “primary payments” license in the cryptocurrency-friendly city of Singapore.
- The license was introduced following the enactment of the Payment Services Act in 2019, allowing companies to legally provide a number of digital asset-related services.
HashKey Group’s over-the-counter unit is the latest cryptocurrency firm to receive a payments license from the Monetary Authority of Singapore. The license, introduced under the Payment Services Act 2019, allows 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 company wrote in a statement, adding that it underscored its efforts to achieve regulatory compliance.
HashKey received in-principle approval for a major payment institution license in February this year. Previously, the company operated under a regulatory exemption, providing spot trading, fiat currency on-ramp and settlement services.
Founded in 2018 and headquartered in Hong Kong, HashKey Group is a financial services company that provides crypto services across Asia through its exchange, asset management, node operation, tokenization, and NFT divisions. The company also has offices in Singapore, Japan, and Bermuda.
A growing cryptocurrency hub
Singapore has emerged as a leading global cryptocurrency hub. It is the host of the much-anticipated TOKEN2049 conference and one of the first countries to issue legislation and tax guidance specifically targeting cryptocurrencies.
The Payment Services Act regulates certain cryptocurrency trading and exchange services, but not token issuance. In 2020, the country complied with the FATF’s so-called “travel rule,” which sets KYC and monitoring 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, which recently ranked second in the World Bank’s Doing Business Index and has no capital gains tax.