Key takeaways:
- Hex Trust stated that the Singapore financial authority had given it initial clearance in principle for an MPI license.
- Hex Trust provides services to digital currency issuers by central banks as well as banks, asset managers, hedge funds, venture capital firms, pension funds, and crypto exchanges.
Hex Trust, a digital asset custodian, stated that the Singapore financial authority had given it initial clearance in principle for a major payment institution (MPI) license.
In a statement on 24 July, Hex Trust claimed that the MPI license will allow it to provide regulated “Digital Payment Token” services, including custody and over-the-counter trading, in the city-state. HEX stated in the statement:
“growing demand amongst institutional clients for sophisticated and compliant digital asset management solutions in a region experiencing rapid fintech development.”
Hex Trust, which established a team and office in Singapore in 2020, obtained a license to offer custody services in September 2021; nevertheless, subsequent modifications to the Payment Services Act included custody within the purview of the updated legislation.
The Monetary Authority of Singapore (MAS), which is renowned for its “rigorous regulatory standards” that seek to strike a balance between innovation and consumer protection, has stringent requirements that Hex Trust CEO Alessio Quaglini mentioned in order for the company to obtain the MPI license.
Blockchain payments company Ripple Labs secured an MPI license approval in principle three months prior, while digital asset custody company BitGo gained its permission in January.
In the meantime, Hex Trust obtained a second Virtual Asset Service Provider license in June from Dubai, allowing it to conduct broker-dealer and investment services, including staking, through its markets division.
Hex Trust provides services to digital currency issuers by central banks as well as banks, asset managers, hedge funds, venture capital firms, pension funds, and crypto exchanges.
It also backs or has previously backed, companies that are native to cryptocurrencies, including AAVE, Algorand, Chainalysis, Polygon, and Sandbox.
In addition to raising $88 million at its Series B investment round on March 16, 2022, Hex Trust has licenses in Hong Kong, France, and Italy.
In July, as part of overhauling the country’s Terrorism Financing laws, the MAS raised the risk classification for crypto trading platforms from medium-low to medium-high. The amended Terrorism Financing National Risk Assessment (NRA) and National Strategy for Countering the Financing of Terrorism (CFT) in Singapore include the updated classification.
