Cryptocurrency Platform Coinhako Receives Major Payment Institution Licence
For the uninitiated, the world of cryptocurrencies may seem riddled with risks such as unlawful financial schemes.
While that may be true in some cases, there are many organisations that are trying their best to debunk these stereotypes. Among them is none other than Coinhako.
With the Monetary Association of Singapore (MAS) adopting a stricter stance towards crypto firms, Singaporeans can rest easy knowing that Coinhako is now one of only four providers that have successfully obtained a Major Payment Institution (MPI) licence.
This means that they can formally operate as regulated providers of Digital Payment Token services under the Payment Services (PS) Act.
The PS Act is a framework for the regulation of payment systems and payment service providers in Singapore, that provides for regulatory certainty and consumer safeguards.
Coinhako prioritises strict risk management & compliance policies
In a press release, Coinhako said that with the MPI licence, which allows them to provide Digital Payment Token (DPT) services in Singapore, they are primed to keep last year’s momentum going.
2021 was the year they saw a 1,200% growth in trading volume from 2020, as well as a 522% year-on-year growth in account openings.
Both Coinhako co-founders have identified risk management as a key factor moving forward. By obtaining the licence, they can now operate while giving their customers confidence and peace of mind.
While there are still major steps to take before cryptocurrency is adopted by the mainstream, this MPI licence will go a long way in bridging the gap.
Lofty requirements for MPI licence
Having the official stamp of approval is vital for any corporation that intends to provide payment services without being subjected to specific minimum requirements.
While there is still a considerable stigma regarding the authenticity of cryptocurrency companies, getting an MPI licence is no mean feat.
According to the MAS website, applicants are assessed on the following criteria:
- Directors’ fitness and decorum
- The company’s governance structure
- Qualifications and experience, particularly in running a payment services business and meeting regulatory requirements
- Financial condition and track record
- Business plans and operational models, as well as operational readiness
- Ability to comply with Payment Service Act obligations
- Regulatory status in other jurisdictions, where applicable
- Commitment to operations in Singapore for applicants with a holding company
- Whether granting a licence will serve the public interest
Although applications will go through intense scrutiny on a case-by-case basis, this standard is in place to ensure all successful applications have been thoroughly reviewed.
Safer digital token payment services with Coinhako
Oftentimes, when it comes to new technologies, we try to form a sense of familiarity by looking for similarities with what we already know.
In the world of cryptocurrency, seeing a service being officially recognised by government authorities can provide some assurance that our digital assets are in safe hands.
Judging by the growth in numbers of cryptocurrency users, the use of digital currency is clearly on its way to becoming more and more common in the coming years.
This post was brought to you in collaboration with Coinhako.
Featured image courtesy of Coinhako and by TheSmartLocal, photography by Clement Sim.
Disclaimer: This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
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