Singapore OKs Crypto Custodian Hex Trust

Hex Trust, a digital asset custodian, has been recognized as the most recent entity to receive in-principle approval for a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS).

Since 2020, the crypto custodian has maintained a dedicated location in Singapore, concentrating on financial institutions, foundations, and protocols. The company intends to broaden its services in the city-state with the sanction of the new license.

The sanction would allow Hex Trust to provide “digital payment token (DPT) services” in Singapore, as stated in the company statement. This implies that Singaporean consumers may participate in “custody and OTC trading of DPTs.”

“Hex Trust’s consistent dedication to operational excellence and compliance, as well as its dedication to Singapore, serve as the foundation for the in-principle approval of this license,” stated Calvin Shen, MD at Hex Trust.

The company was granted an additional Virtual Asset Service Provider (VASP) license by Dubai’s Virtual Asset Regulatory Authority (VARA) last month. Hex Trust has been concentrating on crypto-centric jurisdictions to broaden its digital asset solutions.

The MAS License Approval of Hex Trust is a Response to the Increasing Demand from Institutions

The company’s expansion into Singapore aligns with the favorable crypto environment, made possible by its robust regulatory framework.

According to Hex Trust, there is an increasing demand among institutional clients for digital asset management solutions that are both compliant and sophisticated. This is especially true in regions that are currently witnessing rapid fintech development.

“The Monetary Authority of Singapore maintains stringent regulatory standards that promote innovation while simultaneously safeguarding consumers,” stated Alessio Quaglini, CEO of Hex Trust.

Even though Singapore’s crypto environment is still in its infancy, the country has no plans to permit listing crypto assets, such as spot crypto exchange-traded funds (ETFs). The Singapore Exchange (SGX) CEO recently stated that the conditions are “not ripe” for introducing such products.

Furthermore, in January, the Monetary Authority of Singapore (MAS) declared that spot Bitcoin ETFs would not be permitted for retail investors in Singapore.

Additionally, the nation has implemented more stringent regulations regarding anti-money laundering (AML) measures that apply to cryptocurrency participants.

The measures were implemented in response to the recent significant criminal arrests that Singapore experienced. The AML measures in Singapore required crypto custodial service providers to adhere to them rigorously.