BitGo, a crypto custody business, has received preliminary approval from Singapore’s top financial regulator to obtain a Major Payment Institution (MPI) license for its local entity.
BitGo made the announcement of the in-principle approval on X (formerly Twitter). The approval was granted by the Monetary Authority of Singapore (MAS), Singapore’s central bank. This license enables BitGo to provide digital payment token services to clients in Singapore while awaiting full permit approval.
According to MAS, MPI-licensed firms can offer payment services without being restricted by the 3 million Singapore dollar ($2.2 million) transaction limit for any payment service. Additionally, these approved companies are not subject to the 6 million SG$ ($4.4 million) monthly transaction limit for two or more payment services, except for e-money account issuance and money-changing services.
BitGo previously obtained a crypto custody license in Germany from the German Federal Financial Supervisory Authority (BaFin) on October 24, 2023. Before obtaining the BaFin license, BitGo had been securely storing crypto assets such as Bitcoin for its clients since 2019, under BaFin’s supervision as part of a transitional regime.
Other entities, including Coinbase, Crypto.com, and Ripple, have already obtained full MPI licenses in Singapore. The country aims to strike a balance between favorable regulations, protection, and the promotion of technology without excessive speculation.
In December 2023, Hashdex chose BitGo as the custodian for Bitcoin in its application to become an issuer of a spot exchange-traded fund (ETF) in the United States. The U.S. Securities and Exchange Commission is expected to approve the first spot BTC ETFs in the United States by January 10.
In August 2023, BitGo successfully raised $100 million in Series C financing, boosting the company’s valuation to $1.75 billion. These funds were intended for strategic acquisitions and expanding BitGo’s regulated custody wallet and infrastructure solutions.
BitGo has not responded to Cointelegraph’s request for comment.
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