BitGo Granted Preliminary Approval for Singapore’s Major Payment Institution License
Summary:
BitGo, a cryptocurrency custody firm, has received preliminary approval from Singapore's top financial regulator for a Major Payment Institution license, allowing it to offer digital payment token services locally while the full permit is under process. This follows BitGo's acquisition of a BaFin license in Germany in 2023. Singapore's regulatory environment has also facilitated full licenses for other firms like Coinbase, Crypto.com, and Ripple. Additionally, BitGo was recently chosen by Hashdex as a Bitcoin custodian for its spot exchange-traded fund in the U.S.
BitGo, a firm specialising in cryptocurrency custody, has been given preliminary approval for a Major Payment Institution (MPI) license by Singapore's primary financial regulator via its domestic entity. The initial approval was announced by BitGo through an X post and was granted by the Monetary Authority of Singapore (MAS), the country's central bank. The license enables BitGo to provide digital payment token services to local clients while the full permit is underway.
According to MAS rules, firms with an MPI license can facilitate payment services without a transaction cap of 3 million Singapore dollars ($2.2 million) for any one service. Moreover, they are not bound by the 6 million Singapore dollars ($4.4 million) monthly transaction limit for multiple payment services, excluding the issuance of e-money accounts and money-changing services. This latest approval follows BitGo receiving a BaFin license in Germany on October 24, 2023.
Also, BitGo had been managing assets like Bitcoin (BTC) for patrons from 2019, all under BaFin’s observation as part of a transitional provision. Alongside BitGo, multiple firms including Coinbase, Crypto.com, and Ripple, have also obtained full MPI licenses in Singapore, a country aiming to achieve a balance between favourable regulations and risk management while propelling technological growth without speculation.
In December 2023, Hashdex chose BitGo as the Bitcoin custodian to facilitate its bid to become an issuer of a spot exchange-traded fund (ETF) in the U.S. Regulatory approvals for this ETF from the Securities and Exchange Commission (SEC) are expected later this week. In addition to these developments, BitGo raised $100 million in Series C funding in August 2023, rocketing the firm's valuation to $1.75 billion. The funds are intended to be used for strategic acquisitions and to boost the growth of BitGo’s regulated custody wallet and infrastructure facilities. Unfortunately, BitGo was unavailable for any comments when contacted by Cointelegraph.
Published At
1/10/2024 1:27:57 PM
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