Cryptocurrency custody firm BitGo has received preliminary approval for a Major Payment Institution (MPI) license from Singapore’s top financial regulator through its local entity. The approval enables BitGo to operate while awaiting full permission and to offer crypto payment services to residents in the city-state.
The Monetary Authority of Singapore (MAS) grants MPI license holders the authority to conduct payment services without a transaction limit of SGD 3 million (USD 2.2 million). These companies are also exempt from a monthly transaction limit of SGD 6 million (USD 4.4 million) for two or more payment services, excluding e-money account issuance and domestic money transfer services.
This approval follows BitGo’s acquisition of a crypto custody license from the German Federal Financial Supervisory Authority (BaFin) on October 24, 2023. Prior to the BaFin license, BitGo had been storing crypto assets like Bitcoin under the supervision of BaFin since 2019.
Several prominent crypto organizations, including Coinbase, Crypto.com, and Ripple Labs, have also secured the MPI license in Singapore. The country aims to promote the crypto sector without speculation and ensure citizen protection through appropriate regulations.
In December 2023, Hashdex selected BitGo as the Bitcoin custodian for its application to become a spot exchange-traded fund issuer in the U.S. Furthermore, in August 2023, BitGo raised $100 million in a Series C funding round, planning to use the funds for strategic acquisitions and to expand its regulated custody wallet and infrastructure solutions.