BitGo, a big name in crypto custody, has gotten initial approval for a Major Payment Institution (MPI) license. This came from Singapore’s top financial regulator and is for BitGo’s Singapore branch.
The company announced the partial approval of X (once known as Twitter). Singapore’s central bank, the Monetary Authority of Singapore (MAS), gave this initial license. It lets BitGo operate while it waits for the full license. With this license, BitGo can provide digital payment token services to clients in the city.
As per MAS rules, companies with MPI permits can process payments. There’s no limit on deals, even if they reach 3 million Singapore dollars ($2.2 million). Companies also have freedom from the monthly limit of the 6 million SG$ ($4.4 million). This applies for all services except e-money account issuance and money switches.
The stamp of approval came after BitGo got a cryptocurrency safekeeping license in Germany. The German Federal Financial Supervisory Authority (BaFin) gave this on Oct 24, 2023. Even before this, BitGo carefully handled and kept client’s cryptocurrency assets like Bitcoin from 2019. It was working with BaFin’s supervision during a test period.
BitGo Secures Key Role In Hashdex’s Spot ETF Bid
Coinbase, Crypto.com, and Ripple are among several entities that have gained full MPI licenses in Singapore. The country aims to strike a fair balance between backing regulations and protecting interests. It does this while enhancing technology without encouraging undue speculation.
Dec 2023 marked a notable move by Hashdex. They picked BitGo to look after their Bitcoin holdings. It was an important move in seeking approval for a spot exchange-traded fund (ETF) in the US. The U.S. Securities and Exchange Commission is expected to decide by Jan 10 on the first spot BTC ETFs in the country.
BitGo accomplished a big feat in Aug 2023. They garnered a whopping $100 million from Series C funding. This achievement rocketed the company’s worth to a hefty $1.75 billion. The acquired funds were intentionally set aside for strategic acquisitions. Aim? Amplify BitGo’s regulated custody wallet and strengthen its infrastructure solutions.
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