BitGo gains in-principle approval for MPI license in Singapore

The license allows BitGo to operate while awaiting a complete permit, enabling the provision of digital payment token services to clients in the city-state.

Crypto custody business BitGo has obtained in-principle approval from Singapore’s top financial regulator for a Major Payment Institution (MPI) license through its local entity.

The company announced the in-principal approval in a post on X (formerly Twitter). BitGo received the in-principle license approval from Singapore’s central bank, the Monetary Authority of Singapore (MAS). This license allows BitGo to operate while awaiting a complete permit, enabling the provision of digital payment token services to clients in the city-state.

BitGo receives in-principle approval from the Monetary Authority of Singapore (MAS).

This expands our global footprint and provides APAC with regulated, secure and trusted solutions.

We applaud Singapore’s sound, clear and robust regulatory framework for digital assets. … https://t.co/yTbMgudMCf

— BitGo (@BitGo) January 10, 2024

According to MAS, MPI-licensed firms are authorized to conduct payment services without being subjected to transaction limits of 3 million Singapore dollars ($2.2 million) for any payment service. The approved companies are also free from the 6 million SG$ ($4.4 million) limit of monthly transactions for two or more payment services other than e-money account issuance and money-changing services.

This approval comes after BitGo secured a crypto custody license in Germany from the German Federal Financial Supervisory Authority (BaFin) on Oct. 24, 2023. Before obtaining the BaFin license, BitGo had been storing crypto assets like Bitcoin (BTC) for its clients since 2019 under the supervision of BaFin as part of a transitional regime.

Related: Singapore central bank to trial live wholesale CBDC for settlements

Other entities, including Coinbase, Crypto.com, and Ripple, have obtained complete MPI licenses in Singapore. The country aims to balance favorable regulations with protection while promoting technology without speculation.

In December 2023, Hashdex selected BitGo as the Bitcoin custodian in its application to become an issuer of a spot exchange-traded fund (ETF) in the U.S. However, this week, approvals from the Securities and Exchange Commission(SEC) for this ETF are anticipated.

In August 2023, BitGo raised $100 million in Series C financing, bringing the company’s valuation to $1.75 billion. The company planned to use the funds raised to make strategic acquisitions and expand BitGo’s regulated custody wallet and infrastructure solutions.

BitGo did not respond to Cointelegraph’s request for comment.