BitGo announced on August 7 that it received the MPI license issued by the Central Bank of Singapore (MAS). The MPI license allows the provision of a wide range of payment services, such as digital payment token services, and is exempt from transaction limits imposed on smaller companies.

This license allows BitGo to offer regulated digital payment token services in Singapore, allowing the company to operate safely and legally within Singapore’s strict regulatory environment.

Obtaining an MPI license in Singapore is an important milestone in BitGo’s global strategy. Prior to the license, BitGo only offered custody services and hot wallets from the US South Dakota Trust to users in Singapore and the Asia-Pacific region.

These services were solely technology-based, without being subject to the regulatory framework. However, with the new license, BitGo aims to increase security and transparency standards in the markets by gaining the authority to offer regulated digital asset services.

According to data from the Reserve Bank of Singapore, BitGo has now become one of the 27 MPI licensed firms, which includes major industry players such as Coinbase, Circle, HashKey, Paxos, Revolut and Ripple.

BitGo’s acquisition of the MPI license comes a few months after the company received in-principle approval for this license in January 2024. This license will enable BitGo to expand its offering of digital asset solutions to customers in Asia and beyond.

BitGo Singapore CEO Youngro Lee stated that this license marks a new era for the company’s international operations and will enable them to offer unique digital asset solutions to customers in Asia and other regions.

As one of three city-states in the world, Singapore has become a major hub for cryptocurrency and blockchain technology.

However, the Singapore government has somewhat toughened its regulatory stance on the cryptocurrency sector, especially following the collapse of local hedge fund Three Arrows Capital in the crypto bear market of 2022. This may have further tightened Singapore’s regulatory framework in the cryptocurrency market.

BitGo CEO Mike Belshe noted that Singapore is one of Asia’s leading financial centers and with this license, the company can meet a variety of demands, from fully regulated custody and trading services to its own custody wallets.

Belshe emphasized that BitGo is the only company in the region that offers a full set of services. Additionally, in July 2024, Singapore’s updated National Risk Assessment against Money Laundering had highlighted significant risks from digital payment token service providers.

In April 2024, MAS had amended the country’s Payment Services Law to expand the scope of regulated services regarding digital payment token service providers.

These regulations will position BitGo as a reliable player in the digital asset market in Singapore and play an important role in the company’s global strategy.