Hex Trust will start offering regulated custodial services in Singapore

The company started the process of getting licensed by the local central bank back in 2020

24.07.2024 - 09:25

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What’s new? Crypto custodian Hex Trust has received in-principle approval from the Monetary Authority of Singapore (MAS), which serves as the central bank and financial regulator, to obtain a Major Payment Institution (MPI) license. This license will allow Hex Trust to offer regulated services related to digital payment tokens (DPT).

CoinDesk’s material

What else is known? The licensing regime was created under the Payment Services Act of 2019 and updated in April 2024 to include custodial services for DPTs.

Hex Trust co-founder and CEO Alessio Quaglini noted that the company launched the process of obtaining an MPI license from MAS back in 2020. He said despite the cost and effort, it is a worthwhile acquisition as the company is seeking licenses in all key jurisdictions.

In November last year, Hex Trust received an expanded license in Dubai. The company can now offer comprehensive virtual asset services, including broker-dealer and staking functions. In May, Hex Trust launched its own USDX stablecoin on the Flare Layer 1 (L1) blockchain.

Quaglini stressed that the space for unregulated crypto companies to operate is rapidly shrinking, and obtaining a license opens up more opportunities for market players:

“Companies, at a certain point, very soon, will really need to make a choice. Do I want to be on the white part of the spectrum, in the right, obtain all the licenses, and operate a completely regulated business? Or do I want to be on the other side of the spectrum, outside of regulation?”

Previously, the developer of the Ripple payment protocol and XRP token, US crypto exchange Coinbase, blockchain explorer, crypto wallet service Blockchain_com, and Korean crypto exchange Upbit were granted an MPI license by MAS.

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