Back to the list

OKX Secures In-Principle Approval for Singapore Payments LicenseByDean Fankhauser

source-logo  bitcompare.net 22 May 2024 09:07, UTC

Cryptocurrency exchange OKX has received a significant boost in its expansion plans as its Singapore subsidiary, OKX SG, has been granted in-principle approval for a Major Payment Institution (MPI) license by the Monetary Authority of Singapore (MAS). This approval paves the way for OKX to provide digital payment token services and cross-border money transfer services in Singapore, further solidifying the city-state's position as a leading crypto hub in Asia.

Singapore has emerged as an attractive destination for crypto firms due to its robust regulatory framework, which aims to strike a balance between fostering innovation and ensuring consumer protection. The MAS has been proactive in developing guidelines for the crypto industry, and the granting of in-principle approval to OKX is a testament to the regulator's commitment to creating a conducive environment for crypto businesses to thrive.

With the in-principle approval, OKX plans to focus on its spot crypto products and establish local banking connections to better serve its customers in Singapore. The exchange will also work on developing a tailored suite of products and services for the local market, leveraging its global resources and expertise. OKX President Hong Fang has expressed the company's commitment to the Singapore market, stating that it is a "priority country" for the firm as part of its global strategy.

The approval comes at a time when the global crypto market is experiencing a surge in activity, with Bitcoin reaching new all-time highs and institutional investors increasingly allocating capital to digital assets. The granting of the in-principle approval to OKX adds to the growing list of crypto exchanges that have secured regulatory approvals in Singapore, including heavyweights such as Coinbase, Crypto.com, and Upbit.

The well-developed financial infrastructure, stable political climate, and advantageous tax structure of Singapore have all contributed to its emergence as a crypto hub. The country has also been proactive in attracting talent and investment in the tech sector, with initiatives such as the Singapore Fintech Festival and the establishment of the Singapore Blockchain Innovation Programme.

The in-principle approval granted to OKX is expected to further boost Singapore's reputation as a leading crypto hub and attract more crypto firms to the city-state. As OKX continues to expand its operations in Singapore, it will contribute to the growth of the local crypto ecosystem and help drive innovation in the industry.

In conclusion, the MAS's in-principle approval of OKX is a significant development for both the exchange and Singapore's crypto sector. It underscores the country's commitment to fostering a conducive environment for crypto businesses and solidifies its position as a leading crypto hub in Asia. As OKX and other crypto firms continue to invest in Singapore, the city-state is poised to play an increasingly important role in shaping the future of the global crypto industry.