Cryptocurrency exchange Coinhako has received an in-principle approval from the Monetary Authority of Singapore (MAS) to provide digital payment token services under the Payment Services Act (PSA).

The PSA, which took effect on January 28 2020, consolidates and updates various payments-related legislative measures in Singapore, and also introduces new licensable activities such as the sale and purchase of digital payment tokens (DPTs), including cryptocurrencies such as bitcoin and ether, or operating a platform that enable persons to exchange DPTs.

Coinhako is presently working through the conditions of its in-principle approval with a view towards meeting the MAS requirements to receive the licence as a major payment institution to provide DPT services in Singapore.

Driven by traders, financial institutions and businesses, the global cryptocurrency market recently hit the US$3 trillion mark for the first time. According to a recent survey by Mastercard, 45% of consumers in Asia-Pacific are considering using cryptocurrency within the next year, higher than the global average of 40%.  

In Singapore and across the region, banks have accelerated efforts to adopt blockchain and offer crypto trading, and some traditional financial institutions have launched their crypto exchange platforms.

Yusho Liu, Coinhako’s co-founder and chief executive officer, says: “Singapore has always been at the forefront of fintech innovation. The regulation of DPTs under the Payment Services Act is a clear indication of our nation’s readiness to nurture innovations in the digital assets and cryptocurrency space while balancing the need to protect consumer and social interests. This will not only add to the growth of Singapore as a crypto financial hub, but also allow retail traders and institutions to better identify which institutions are able to meet their digital asset needs.”

Coinhako offers both fiat-to-crypto and crypto-to-crypto trading services with a digital wallet for traders to store their digital assets easily and safely. Since its launch in 2014, the firm has grown tremendously. In the first eight months of 2021, it has seen a 1000% increase in trading volume, compared to the whole of 2020. Currently, it has over 300,000 registered users in Singapore and an average of 150,000 monthly active users.

Earlier this year Coinhako launched Privé, a digital assets platform to serve the institutional and high-net-worth markets. It also recently hosted Singapore’s first large-scale NFT gallery event, Right Click + Save, at Le Freeport, which has garnered international attention.