- BitGo secures in-principle approval for an MPI license in Singapore, allowing it to offer digital payment token services without transaction limits.
- MPI-licensed entities like BitGo are exempt from the 3 million Singapore dollar and 6 million SG$ monthly transaction limits for payment services.
- BitGo’s expansion continues, following its acquisition of a crypto custody license in Germany, as it gains a foothold in Singapore’s growing crypto market.
BitGo, a leading player in the crypto custody industry, has achieved a significant milestone with in-principle approval for a Major Payment Institution (MPI) license in Singapore.
The Monetary Authority of Singapore (MAS), the country’s central bank, has granted BitGo this crucial license, allowing the company to operate while awaiting full authorisation. This pivotal development empowers BitGo to offer digital payment token services to clients within the city-state.
Unlocking New Possibilities
The MPI license represents a significant regulatory achievement for BitGo. Under this license, MPI-licensed entities are authorized to provide payment services without encountering transaction limits, setting them free from the constraints of a 3 million Singapore dollar ($2.2 million) transaction limit for any payment service. Moreover, these approved entities are exempt from the monthly transaction cap of 6 million SG$ ($4.4 million) for two or more payment services, except for e-money account issuance and money-changing services.
BitGo’s journey to obtain the MPI license in Singapore follows its successful acquisition of a crypto custody license from the German Federal Financial Supervisory Authority (BaFin) on October 24, 2023.
Before securing the BaFin license, BitGo had been responsibly safeguarding crypto assets, including Bitcoin, for its clients since 2019 under BaFin’s supervision as part of a transitional regime.
Aligning with Singapore’s Vision
BitGo is not the only prominent player in the crypto space to obtain an MPI license in Singapore. Coinbase, Crypto.com, and Ripple are among the entities that have secured complete MPI licenses. Singapore has strived to strike a balance between favorable regulations, investor protection, and the promotion of technology-driven advancements without excessive speculation.
BitGo’s significance extends beyond Singapore’s shores. In December 2023, Hashdex chose BitGo as the Bitcoin custodian in its quest to become an issuer of a spot exchange-traded fund (ETF) in the United States.
The U.S. Securities and Exchange Commission is expected to make a historic decision by approving the first spot BTC ETFs in the United States by January 10.
BitGo’s remarkable journey also includes a successful Series C financing round in August 2023, where the company raised an impressive $100 million. This funding was earmarked for strategic acquisitions and the expansion of BitGo’s regulated custody wallet and infrastructure solutions, positioning the company as a pivotal player in the evolving crypto landscape.