OKX will obtain approval in principle for a payment institution license in Singapore

Crypto exchange OKX has received approval in principle from Singapore's financial regulator for a Principal Payment Institution (MPI) license through its local subsidiary, OKX SG.

In an announcement sent to Cointelegraph, OKX said it has already received proof-of-principle for its license. MPI is licensed by the Monetary Authority of Singapore (MAS), the country's chief financial regulator. After receiving full approval from MAS, OKX will be allowed to offer digital payment token services and cross-border transfers within the country.

OKEX President Hong Fang said Singapore is a priority for the exchange in its global strategy. The executive explained that Singapore will attract entrepreneurs entering new markets. It's a market for tech-savvy early adopters. Fang described the country's regulatory framework as “clear and considerate”, allowing businesses to “build better for the long term”.

Fang explained that in the new phase of development, the company will focus on its products in Singapore. In the future, Okex will work to expand its offerings by bringing local banking relationships with its customers.

MPI licensed companies are allowed to facilitate multiple payment services beyond the volume limit set for payment organizations. This means OKX can exceed the SG$3 million (about US$2.2 million) limit for any payment service and the monthly SG$6 million (US$4.4 million) limit for two or more payment services.

The in-principle approval comes after OKX receives conditional approval from the Dubai Crypto Regulator. On January 16, the Dubai Virtual Assets Regulatory Authority granted OKX a license allowing the company to provide regulated services to virtual asset service providers in the region.

Related: Singapore's central bank says ‘timely transfer' for statcoins for three business days

In addition to OKX, crypto holding business BitGo has received proof of principle from MAS. On January 10, BitGo announced that it received the first node by completing additional requirements set by the administrator.

Other crypto firms including Crypto.com, Coinbase and Ripple have obtained full payment institution licenses in Singapore. In June 2023, Crypto.com received its MPI license after completing the requirements set by the regulator. Coinbase got its license on October 2, 2023, Ripple got its formal approval on October 4, 2023.

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