Crypto custody business BitGo has made a significant stride in Singapore’s financial market by obtaining in-principle approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution (MPI) license through its local entity.
The In-Principle Approval
The company announced the in-principal approval in a post on X (formerly Twitter). This license is a pivotal step for BitGo, allowing it to operate in Singapore while awaiting a complete permit, facilitating the provision of digital payment token services to clients in the city-state.
Implications of MPI License
According to MAS, firms holding an MPI license can conduct payment services without being limited by transaction caps such as 3 million Singapore dollars ($2.2 million) for any single payment service. Additionally, these firms are not bound by the 6 million SG$ ($4.4 million) monthly transaction limit for multiple payment services, excluding e-money account issuance and money-changing services.
BitGo’s Global Presence
Before this achievement, BitGo had secured a crypto custody license in Germany from the German Federal Financial Supervisory Authority (BaFin) on Oct. 24, 2023. The firm has been involved in storing crypto assets like Bitcoin for its clients since 2019 under BaFin’s transitional regime.
Singapore’s Competitive Landscape
Singapore has been a hub for major crypto entities, including Coinbase, Crypto.com, and Ripple, all of which have acquired complete MPI licenses. The country is renowned for its balanced approach, promoting technology innovation while ensuring regulatory compliance and protection.
Recent Developments and Future Plans
In December 2023, Hashdex chose BitGo as the Bitcoin custodian for its U.S. spot exchange-traded fund (ETF) application. Additionally, in August 2023, BitGo raised $100 million in Series C financing, reaching a valuation of $1.75 billion. The firm plans to leverage these funds for strategic acquisitions and to expand its regulated custody wallet and infrastructure solutions.
