Coinspeaker Hex Trust Wins In-Principle Approval as Major Payments Institution in Singapore
Hex Trust, a leading financial services company focused on institutional investors, has received In-Principle Approval (IPA) from the Monetary Authority of Singapore (MAS) to legally offer its products to customers in the region. According to an official announcement on Wednesday, the company, alongside its affiliates known as the “Hex Trust Group”, will now serve as a Major Payment Institution (MPI) in the country.
Limited Services until Full License
The In-Principle Approval will allow Hex Trust to offer limited services to its customers until it is granted the full MPI license, which is usually authorized by the MAS, serving as both the country’s central bank and financial watchdog.
For now, the company can offer regulated Digital Payment Token (DPT) services in the region. This includes providing over-the-counter (OTC) and custody services to customers in Singapore.
Hex Trust initially entered the Singapore market in 2020 when it opened a regional office in the city-state. The firm later obtained a Capital Markets Services (CMS) license in 2021 to enable it to provide custodial services regulated under Singapore’s Securities and Futures Act.
However, things changed when the law was amended, and the company was required to obtain an MPI license in compliance with the new Payment Services Act.
Commitment to Compliance
Hex Trust CEO Alessio Quaglini disclosed that the firm was subjected to rigorous scrutiny to win the new MPI license. He further noted that the MAS “upholds rigorous regulatory standards that balance fostering innovation with ensuring consumer protection.”
The firm sees Singapore as a vibrant hub for fintech innovation, known for its outstanding regulatory framework.
Commenting on the new development, Calvin Shen, the managing director of Hex Trust, said the latest MPI license shows the company’s commitment to compliance with regulatory requirements.
“We are not only reinforcing our leading role in working closely with regulatory bodies, but also enhancing our capability to safeguard and optimize the digital assets of our institutional clients with regulatory clarity,” he said.
Not the First
Hex Trust has now joined the growing list of companies approved to serve as major payment institutions in Singapore. Earlier this year, BitGo, a crypto custody firm, was awarded an In-Principle Approval to offer its services to customers in the region. The IPA license was authorized by the MAS in January. Other crypto-native companies such as Crypto.com, Coinbase, and Ripple Labs have been licensed to operate in Singapore.
However, unlike Hex Trust and BitGo, Crypto.com and Coinbase have obtained full regulatory approval to serve as an MPI. The license allows these companies to provide their full suite of business offerings to customers in the region.
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Hex Trust Wins In-Principle Approval as Major Payments Institution in Singapore