BitGo’s Singapore Success: A Step Closer to MPI License Authorization
BitGo has obtained in-principle approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution (MPI) license through its local entity. This license allows BitGo to operate and provide digital payment token services in Singapore while awaiting a complete permit.
BitGo’s Crypto Custody Journey
BitGo’s achievement in Singapore is significant, as it has been granted the Major Payment Institution license by MAS, allowing the company to provide payment services without being bound by specific transaction limits. This means BitGo is unrestricted by the 3 million Singapore dollars ($2.2 million) limit for individual payment services or the 6 million SG$ ($4.4 million) cap for monthly transactions across two or more payment services, excluding e-money account issuance and money-changing services.
BitGo’s Dual Success: Singapore and Germany
It’s worth highlighting that BitGo’s success in Singapore comes on the heels of its recent accomplishment in Germany, where it secured a crypto custody license from the German Federal Financial Supervisory Authority (BaFin) on October 24, 2023. Prior to obtaining the BaFin license, BitGo had been responsible for safeguarding crypto assets for its clients under BaFin’s oversight since 2019 as part of a transitional arrangement
Other prominent entities like Coinbase, Crypto.com, and Ripple have also acquired complete Major Payment Institution (MPI) licenses in Singapore. Singapore’s regulatory approach aims to strike a balance between fostering favourable regulations for financial technology development and protecting consumers, all while discouraging excessive speculation.
In December 2023, Hashdex selected BitGo as the Bitcoin custodian for its application to become an issuer of a spot exchange-traded fund (ETF) in the United States. The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) by January 10 was anticipated at that time.
In August 2023, BitGo successfully raised $100 million in Series C financing, reaching a valuation of $1.75 billion. The funds were intended to be used for strategic acquisitions and to expand BitGo’s regulated custody wallet and infrastructure solutions. This indicates strong investor confidence in BitGo’s business and its role in the growing cryptocurrency and digital asset ecosystem.
BitGo’s recent in-principle approval for a Major Payment Institution (MPI) license in Singapore, following its crypto custody license in Germany, underscores its global regulatory strides and commitment to expanding its services in key financial markets. This regulatory recognition, along with successful ventures such as being chosen as the Bitcoin custodian by Hashdex for a U.S. spot exchange-traded fund (ETF) application, positions BitGo as a significant player in the evolving landscape of digital asset services.
The company’s strategic funding, marked by a $100 million Series C financing in August 2023, further solidifies its standing, signaling both investor confidence and a commitment to enhancing its regulated custody wallet and infrastructure solutions. As the regulatory landscape continues to evolve, BitGo’s achievements reflect its adaptability and success in navigating diverse jurisdictions while contributing to the broader narrative of legitimizing and advancing the adoption of digital assets worldwide.