California-based cryptocurrency custody firm BitGo is significantly expanding its global footprint by securing regulatory approval in Singapore, a key financial hub known for its crypto-friendly environment. On August 7, BitGo officially announced that it had obtained the Major Payment Institution (MPI) License from the Monetary Authority of Singapore (MAS).
A Strategic Move in a Crypto-Friendly Hub
The MPI license is a critical milestone for BitGo as it allows the firm to provide a broad range of payment services, including digital payment token services, without the transaction limits that apply to smaller entities. This regulatory approval positions BitGo among a select group of 27 MPI-licensed firms, which includes prominent industry players such as Coinbase, Circle, HashKey, Paxos, Revolut, and Ripple.
| Milestone | Date | Details |
|---|---|---|
| In-Principle Approval | January 2024 | Received initial approval for the MPI license |
| Full MPI License Granted | August 2024 | Officially granted the Major Payment Institution License by MAS |
| Expanded Services | Post-License Approval | Now offering regulated custody and trading services in Singapore |
With the MPI license in hand, BitGo is now authorized to offer regulated digital payment token services, such as custody and trading, within Singapore. Prior to this, BitGo served its clients in Singapore and the broader Asia-Pacific region primarily through custody services from its US South Dakota Trust and through unregulated tech-only hot wallets. The new license, however, marks a significant shift, allowing BitGo to provide fully regulated services within Singapore.
“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.
Singapore’s Role as a Cautious yet Leading Crypto Hub
Singapore, one of the few city-states globally, has rapidly developed into a major hub for cryptocurrency and blockchain technology. Despite its progressive stance, the Singaporean government has taken a cautious approach, especially following the high-profile collapse of local hedge fund Three Arrows Capital during the 2022 crypto bear market. This event prompted regulators to harden their stance on the sector, even as they continued to issue licenses to crypto firms.
“Singapore is a leading financial center in Asia,” said BitGo CEO Mike Belshe. “With this license, we can meet the rising demands of clients with a diverse set of needs, from fully regulated custody and trade to self-custody wallets. BitGo is the only company in the region offering the full set of services.
Singapore’s regulatory environment continues to evolve as the government aims to strike a balance between fostering innovation and mitigating risks. In July 2024, the updated Money Laundering National Risk Assessment highlighted significant risks associated with digital payment token service providers. To address these concerns, the MAS announced amendments to the Payment Services Act in April 2024, expanding the scope of regulated services related to digital payment tokens.
BitGo’s successful acquisition of the MPI license is not only a testament to the firm’s commitment to compliance but also a strategic move that solidifies its presence in a region that is becoming increasingly important for the global cryptocurrency market.
BitGo’s successful acquisition of the MPI license in Singapore represents a significant expansion of its global operations and underscores its commitment to providing secure and regulated digital asset services. As Singapore continues to refine its regulatory framework, BitGo’s position within this key financial hub will likely serve as a model for other firms looking to navigate the complexities of the global cryptocurrency landscape.
Featured image credit: gstudioimagen1 via Freepik
Follow us for more breaking news on DMR