With the license, BitGo can continue to operate while waiting for a full permit, allowing it to offer digital payment token services to customers in the city-state.
The top financial regulator in Singapore has given BitGo, a cryptocurrency custodial company, preliminary approval to apply for a Major Payment Institution (MPI) licence through a local organisation.
The business published a message on X (previously Twitter) announcing the in-principle approval. The Monetary Authority of Singapore (MAS), Singapore’s central bank, granted BitGo the licence approval in principle. With this licence, BitGo can continue operating while waiting for a full permit, allowing it to offer digital payment token services to city-state customers.
Transaction limitations of three million Singapore dollars ($2.2 million) for any payment service are not applicable to MPI-licensed companies, according to MAS, who are allowed to perform payment services. The authorised businesses are also exempt from the 6 million Singapore dollars ($4.4 million) monthly transaction cap for two or more payment services other than the creation of electronic money accounts and currency exchange services.
This permission follows BitGo’s Oct. 24, 2023, acquisition of a crypto custody licence from the German Federal Financial Supervisory Authority (BaFin). BitGo had been keeping digital assets, including as Bitcoin, for its clients since 2019 under BaFin’s supervision as part of a transitional system before acquiring the BaFin licence.
Complete MPI licences have been obtained in Singapore by other organisations, including as Coinbase, Crypto.com, and Ripple. The nation seeks to provide protection, without sacrificing favourable regulations, and to advance technology without speculation.
In its application to become an issuer of a spot exchange-traded fund (ETF) in the United States, Hashdex chose BitGo as the Bitcoin custodian in December 2023. By January 10, it is anticipated that the U.S. Securities and Exchange Commission will have approved the country’s first spot BTC ETFs.
BitGo completed a $100 million Series C financing round in August 2023, raising the company’s valuation to $1.75 billion. The money raised would be put towards expanding BitGo’s regulated custody wallet and infrastructure solutions, as well as making strategic acquisitions.