California-based cryptocurrency custody firm BitGo has achieved a significant milestone in its global expansion strategy. The company has officially obtained the Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), marking a pivotal moment for its operations in one of Asia's most prominent financial hubs.
Understanding BitGo's New Regulatory Milestone
BitGo announced on August 7 that it had received full approval from Singapore’s central bank, following an in-principle grant issued in January 2024. This license enables the firm to offer a comprehensive suite of regulated digital payment token services, including custody and trading, without being subject to the transaction limits that apply to smaller payment institutions.
Prior to this authorization, BitGo served users in Singapore and the broader Asia-Pacific region but was limited to providing custody services through its US-based South Dakota Trust and non-regulated hot wallet solutions. The MPI license now permits BitGo to operate under Singapore’s regulatory framework, significantly broadening its service capabilities.
The Significance of the Major Payment Institution License
The MPI license is a key component of Singapore’s Payment Services Act, which governs payment and digital token service providers. It allows companies to offer regulated digital payment token services, including cross-border money transfers, merchant acquisition, and electronic wallet operations.
With this approval, BitGo joins an exclusive group of just 27 MPI-licensed firms in Singapore. Other major players in this category include Coinbase, Circle, Ripple, Paxos, Revolut, and HashKey. This regulatory endorsement signals both credibility and compliance readiness, essential traits for attracting institutional clients.
Youngro Lee, CEO of BitGo Singapore, emphasized the importance of this development:
"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."
Singapore’s Evolving Crypto Regulatory Landscape
Singapore has long been regarded as one of the world’s most crypto-friendly jurisdictions. However, its regulatory approach has grown more cautious in recent years, particularly following high-profile industry failures such as the collapse of the Singapore-based hedge fund Three Arrows Capital in 2022.
In response, the MAS has introduced stricter regulatory measures. In April 2024, it amended the Payment Services Act to expand the scope of regulated digital payment token services. A July 2024 money laundering risk assessment also highlighted significant risks associated with digital payment token service providers, urging tighter oversight.
Despite these measures, Singapore remains a critical market for global crypto firms. Its robust legal framework and strategic location make it an attractive base for companies targeting the Asian market.
What BitGo’s License Means for Users
For BitGo’s clients, the MPI license translates to enhanced security, broader service offerings, and stronger regulatory protections. Users in Singapore and the wider APAC region can now access:
- Fully regulated digital asset custody
- Licensed trading services
- Integrated hot and cold wallet solutions
- Cross-border payment capabilities
Mike Belshe, CEO of BitGo, noted:
"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."
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Frequently Asked Questions
What is a Major Payment Institution (MPI) license?
An MPI license is issued by the Monetary Authority of Singapore and allows companies to provide digital payment token services, custody, and cross-border payments without transaction limits. It is a key requirement for fintech and crypto firms operating in Singapore.
How does BitGo’s MPI license benefit users?
Users gain access to regulated and secure digital asset services, including trading, custody, and wallet solutions backed by Singapore’s strong regulatory framework. This enhances trust and operational flexibility for both individual and institutional clients.
Which other companies hold an MPI license in Singapore?
Notable MPI license holders include Coinbase, Circle, Ripple, Revolut, Paxos, and HashKey. These companies are authorized to offer similar payment and digital token services under MAS supervision.
Is Singapore still crypto-friendly after recent regulatory changes?
Yes, Singapore remains a supportive environment for cryptocurrency innovation but with heightened emphasis on compliance, anti-money laundering measures, and consumer protection. The changes aim to foster sustainable growth rather than discourage innovation.
Can international users access BitGo’s Singapore-based services?
While the license specifically enhances BitGo’s offerings in Singapore, the company continues to serve global clients. Services may vary by jurisdiction based on local regulations.
What types of wallets does BitGo offer?
BitGo provides both hot (internet-connected) and cold (offline) wallets, alongside fully regulated custody solutions. The MPI license allows these services to be offered under Singapore’s legal guidelines.