BitGo has obtained the Major Payment Institution License from the Monetary Authority of Singapore, allowing the firm to expand its digital payment token services.
Points
- BitGo secures Major Payment Institution License from Singapore’s MAS.
- License enables a broad range of payment services without transaction limits.
- BitGo can now offer regulated digital payment token services in Singapore.
- The move signals BitGo’s international expansion strategy.
- Singapore remains a significant crypto hub despite regulatory caution.
California-based cryptocurrency custody firm BitGo has taken a significant step in expanding its global operations by securing the Major Payment Institution License （MPI） from the Monetary Authority of Singapore （MAS）. Announced on August 7, this license enables BitGo to provide a wide range of payment services, including digital payment token services, without the transaction limits imposed on smaller entities.
With the new license, BitGo joins the ranks of 27 other MPI-licensed firms, which include prominent industry players like Coinbase, Circle, HashKey, Paxos, Revolut, and Ripple. This achievement comes just months after BitGo received in-principle approval for the license in January 2024. The acquisition allows BitGo to offer regulated digital payment token services such as custody and trading in Singapore.
Before obtaining the license, BitGo’s services in Singapore and the Asia-Pacific region were limited to custody services from the US South Dakota Trust and unregulated hot wallets. This new regulatory approval marks a significant milestone for BitGo’s international operations. BitGo Singapore CEO Youngro Lee emphasized that the license allows the company to deliver unparalleled digital asset solutions to clients in Asia and beyond.
Despite Singapore’s growing status as a hub for cryptocurrency and blockchain technology, the city-state’s government has adopted a cautious regulatory approach, particularly following the bankruptcy of local hedge fund Three Arrows Capital during the 2022 crypto bear market. BitGo CEO Mike Belshe highlighted Singapore’s role as a leading financial center in Asia, stating that the license enables BitGo to meet diverse client demands, from fully regulated custody and trade to self-custody wallets.
The updated Money Laundering National Risk Assessment released by MAS in July 2024 pointed out significant risks associated with digital payment token service providers. Moreover, amendments to the Payment Services Act announced in April 2024 aim to expand the scope of regulated services for digital payment token providers.
解説
- BitGo’s Major Payment Institution License from Singapore’s MAS is a notable step towards expanding its services in Asia, signaling a broader acceptance and regulatory recognition of cryptocurrency firms in global financial hubs.
- The license enables BitGo to provide comprehensive digital payment services, meeting the rising demand for regulated crypto solutions.
- Singapore’s cautious yet progressive regulatory environment for cryptocurrency can serve as a model for other countries aiming to balance innovation with risk management.
- This development underscores the importance of regulatory compliance for crypto firms seeking to expand their global footprint.