BitGo Expands Global Reach with Major Payment Institution License in Singapore

On August 7, California-based cryptocurrency custody firm BitGo announced a major expansion of its global operations by securing regulatory approval in Singapore. The company has obtained the prestigious Major Payment Institution (MPI) License from the Monetary Authority of Singapore (MAS), marking a pivotal moment in its international growth strategy.

What the MPI License Means for BitGo

The MPI license allows BitGo to offer a broad spectrum of payment services, including digital payment token services, without the transaction limits imposed on smaller entities. This regulatory approval is a key milestone, enabling BitGo to provide fully regulated digital asset solutions in one of the world’s most crypto-friendly environments.

According to MAS data, BitGo joins an elite group of 27 MPI-licensed firms, which includes major industry players such as Coinbase, Circle, HashKey, Paxos, Revolut, and Ripple.

The acquisition of the MPI license follows BitGo’s in-principle approval for the license earlier this year in January. With the license now officially granted, BitGo can offer regulated digital payment token services in Singapore, including custody and trading solutions.

Previously, BitGo provided only custody services in Singapore and the Asia-Pacific region through its U.S. South Dakota Trust and unregulated hot wallets. The MPI license allows the company to expand its offerings and deliver more comprehensive digital asset solutions.

“This license marks a new era for BitGo’s international operations, enabling us to deliver unparalleled digital asset solutions to our clients in Asia and beyond,” said Youngro Lee, CEO of BitGo Singapore.

Singapore’s Evolving Crypto Landscape

Singapore, one of only three city-states globally, has emerged as a prominent hub for cryptocurrency and blockchain technology. The country’s proactive stance on issuing licenses to crypto firms underscores its commitment to fostering a robust digital finance ecosystem.

However, Singapore’s regulatory approach has become more cautious following the bankruptcy of the local hedge fund Three Arrows Capital during the 2022 crypto bear market. Despite the issuance of multiple licenses, the government has tightened its regulatory framework to address potential risks in the sector.

BitGo CEO Mike Belshe highlighted Singapore’s role as a leading financial center in Asia, stating:

“With this license, we can meet the rising demands of clients with a diverse set of needs, from fully regulated custody and trade to self-custody wallets. BitGo is the only company in the region offering the full set of services.”

Recent Regulatory Developments

In July 2024, Singapore updated its Money Laundering National Risk Assessment, identifying significant risks associated with digital payment token (DPT) service providers. Additionally, in April 2024, the MAS introduced amendments to the Payment Services Act, broadening the scope of regulated services for digital payment token providers.

BitGo’s new MPI license places it at the forefront of Singapore’s evolving crypto landscape, positioning the firm to effectively address the growing demands for comprehensive digital asset solutions in the region.