By
Steve Muchoki
April 23rd, 2024
While the in-principle approval in Singapore adds to OKX’s recent string of regulatory achievements, MAS has set other conditions to be met before the final approval of an MPI license.
OKX, one of the leading crypto exchanges, announced the acquisition of in-principle approval for a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS) through its subsidiary, OKX SG, on March 13, 2024. This move can further solidify Singapore’s growing status as a crypto-friendly hub.
The in-principle approval signifies a major step forward for OKX’s growth plan in Southeast Asia. The company plans to focus on Singapore at first, and it will prioritize its spot trading product while seeking local banking relationships that will enable better customer experiences.
Singapore is an important regional financial and tech hub for OKX, and its reputation is a source of its success. As highlighted by Hong Fang, the President of OKX, Singapore lures forward thinkers, entrepreneurs, innovators and a broader market of early tech adopters.
“Singapore has always been a priority country for us as part of our global strategy. As a regional financial and technology hub, Singapore attracts forward thinkers, entrepreneurs, and innovators who are open to venturing into the new. It’s a market of early adopters who are well-versed in technology”, said Hong Fang.
Fang also stressed the “clear and thoughtful” regulatory framework that MAS built to help long-term business growth in the crypto space. This is consistent with Singapore’s push to become a premier player in FinTech worldwide by drawing brands such as OKX and supporting local innovation.
Recent Regulatory Milestones Propel OKX Expansion
In addition to securing approval in Singapore, OKX received a regulatory license in Dubai in January. This license allows the exchange to serve retail customers with cryptocurrencies, leading the company to strengthen further its position as one of the largest players in the global cryptocurrency market.
Last year, the exchange also announced plans to expand into India in terms of wallet services with a view to engaging the developer community even despite regulatory uncertainties. The approach of OKX to India is based on collaboration and engagement with the local community.
Most recently, the exchange launched OKX TR which is a crypto exchange targeting users in Turkey specifically. The company announced the release on February 27. Besides, OKX TR integrates OKX’s global Web3 Wallet, allowing Turkish users to access a wide range of features.
Exchange is now awaiting operational approval to introduce many services in the city to boost its presence in the Middle East. Additionally, OKX recently closed down its Mining Pool and related services due to business adjustments
OKX Progresses towards Full MPI License
While the in-principle approval in Singapore adds to OKX’s recent string of regulatory achievements, MAS has set other conditions to be met before the final approval of an MPI license for them. This process shows how committed it is to ensuring that cryptocurrencies are well-regulated through strict due diligence.
With the MPI license, OKX will be able to facilitate several payment services that will surpass any single payment service’s 3 million SGD (about $2.2m) limit as well as two or more payment services’ 6 million SGD ($4.4M) monthly limit.
In addition to OKX, BitGo, a crypto-custodial firm, also received approval in principle from MAS on 10 January. Last week, Bitstamp, a European crypto exchange, received similar approval from MAS, thereby becoming the first European company to receive such approval.