Crypto exchange XREX gets Singapore license
Asia-based crypto exchange XREX has secured in-principle approval from the Monetary Authority of Singapore for a Major Payment Institution (MPI) license. This initial approval paves the way for XREX to offer digital payment token products and services in Singapore.
Upon obtaining the full license, XREX intends to expand its BitCheck payment tool, which currently facilitates transactions involving fiat currencies, stablecoins, and various cryptocurrencies. Wayne Huang, co-founder and Group CEO of XREX, highlighted that XREX Singapore will serve as the primary provider of products across the Asia Pacific (APAC) region. Meanwhile, XREX Taiwan will continue to play a pivotal role in product design, engineering, research, and threat analysis functions for the company.
XREX Singapore, slated as the Asia Pacific headquarters for the group, aims to target emerging markets in the vicinity where access to USD liquidity might pose challenges.
This regulatory milestone places XREX in the league of approved exchanges, stablecoin issuers, neobanks, and payment service providers in Singapore. The MAS has received over 580 applications for payment services licenses since the introduction of this licensing regime in January 2020.
Nevertheless, fewer than 20 Digital Payment Token (DPT) licenses and in-principle approvals have been granted to date. XREX joins the ranks of established entities like Coinbase, DBS Vickers, Circle, Paxos, Ripple, and Revolut, having received this nod from the MAS.
“Hard-fought, the approval from the MAS has taken years to come to fruition, and rightly so. Singapore wants to attract responsible actors, and the reality is that doing so necessitates a fine-tooth comb. This is great for Singapore and great for our industry as a whole,” said XREX Singapore CEO, Christopher Chye. “XREX is looking forward to introducing cheaper, safer, and faster domestic and cross-border payments for Singapore and emerging market businesses.”
“Singapore boasts a progressive and robust regulatory framework, offering our users the clarity and confidence they need to access digital assets and use stablecoins,” said XREX Group and XREX Singapore Head of Compliance, Nick Chang. XREX Singapore Head of Legal Jason Lai adds, “We’re excited to bring to bear our team’s expertise in navigating the intricacies of cross-border legal frameworks and common law principles. The in-principle approval further cements our commitment to regulatory compliance and user safety.”
The move also further cements the city-state’s position as a hub for cryptocurrency activity in Asia. It comes even as regulators in Singapore said they may implement consumer protections for crypto investors, which could include suitability tests, curbs on leverage trading and credit facilities. The regulator may restrict retail investment in the crypto sector through new consumer protection safeguards.