California-based cryptocurrency custody firm BitGo is expanding its global operations by obtaining regulatory approval in Singapore, one of the world’s most crypto-friendly countries.
On August 7, BitGo announced that it had obtained the Major Payment Institution License (MPI) from the Monetary Authority of Singapore (MAS). This license allows the company to provide a wide range of payment services, including digital payment token services, without being subject to the transaction limits imposed on smaller entities.
Source: BitGo
Furthermore, with this new license, BitGo joins 27 MPI-licensed firms in Singapore, including major industry players like Coinbase, Circle, HashKey, Paxos, Revolut, and Ripple.
Source: The Monetary Authority of Singapore (MAS)
“This license marks a new era for BitGo’s international operations, enabling us to deliver unparalleled digital asset solutions to our clients in Asia and beyond,” said Youngro Lee, CEO of BitGo Singapore.
Furthermore, before receiving the MPI license, BitGo only offered custody services from its US South Dakota Trust and hot wallets in Singapore and Asia-Pacific. These were not regulated products but rather tech-only offerings.
Singapore, one of only three city-states in the world, has emerged as a significant hub for cryptocurrency and blockchain technology. However, the government has taken a cautious approach, particularly after the local hedge fund Three Arrows Capital went bankrupt during the 2022 crypto bear market.
“With this license, we can meet the rising demands of clients with diverse needs, from fully regulated custody and trade to self-custody wallets,” said Mike Belshe, CEO of BitGo. “BitGo is the only company in the region offering the full services.”
BitGo Secures MPI License Amid Singapore’s Evolving Crypto Regulations
In July 2024, Singapore’s updated Money Laundering National Risk Assessment pointed out significant risks stemming from digital payment token (DPT) service providers. In response, the Monetary Authority of Singapore (MAS) announced amendments to the country’s Payment Services Act in April 2024 to expand the scope of regulated services related to DPT service providers.
Despite these regulatory changes, Singapore’s cryptocurrency industry continues to grow. The country’s government has been working to develop the nation as a hub for cryptocurrency and blockchain technology while also taking a cautious approach to managing the risks associated with this emerging sector.
Moreover, BitGo’s acquisition of an MPI license is a significant milestone in the company’s expansion into the Asia-Pacific region. With this new license, BitGo can now offer a full suite of regulated digital asset services, including custody and trading, to its clients in Singapore and beyond.
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