Lately, the crypto industry has achieved a lot in terms of regulatory compliance. Recently, OKX, which is the second largest offshore cryptocurrency exchange, obtained an in-principle approval from Singapore’s financial regulator for a Major Payment Institution (MPI) license through their local subsidiary OKX SG.
As per the press release, this significant step enables the exchange to deliver digital payment tokens and cross-border remittance services in Singapore under the PS Act. Thus, it paves the way for the development of customized products and services for its consumers within Singapore. For now, users in Singapore can access OKX through the web or iOS and Google Play apps. However after obtaining a full MPI license from the Monetary Authority of Singapore (MAS), the platform will be able to offer a broader range of services.
OKX President Hong Fang said:
As we build technology globally to empower the future, we’re continually humbled by opportunities to build locally. Singapore is a priority market and we’ve been investing here for some time. The in-principle approval from MAS is not only a validation of our commitment to date, but also an exciting opportunity for us to continue as a responsible contributor to the Singapore crypto ecosystem.
Moreover, the exchange has a strategy for centralized finance (CeFi), which is based on regulatory compliance. According to Mauricio Beugelmans, the Chief Legal Officer of OKX, MAS has the best guidelines in the world since they are meant to protect consumers and ensure fairness in the market as well as keep it secure. He also said that OKX was keen on serving clients in Singapore and participating actively in the continually expanding crypto space of that country.
OKX’s Global Regulatory Compliance
This news comes on the heels of OKX receiving a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA) in January 2024 for VA Exchange Services. Notably, the VASP license will allow OKX Middle East to offer regulated virtual asset exchange services, including spot and fiat trading services, AED deposits and withdrawals, and spot trading pairs.
Furthermore, the latest approval from Singapore’s financial watchdog is a significant milestone, as a recent report from Coinbase revealed that over half of finance-savvy Singaporeans own crypto, with staking emerging as the top use case. This presents an opportunity for regulated platforms like OKX to enable compliant participation in this growing trend through features emphasizing security, consumer protections, and compliance.
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