US crypto firm BitGo wins payment license in Singapore

California-based cryptocurrency custody firm BitGo is expanding its global operations by obtaining regulatory approval in Singapore, one of the world's most crypto-friendly countries.

BitGo has obtained the Major Payment Institution License (MPI) from the Monetary Authority of Singapore (MAS), the firm officially announced on Aug. 7.

The MPI license allows companies to provide a wide range of payment services, such as digital payment token services, without being subject to transaction limits imposed on smaller entities.

According to data from the MAS, BitGo is now one of 27 MPI-licensed firms alongside major industry companies like the United States exchange Coinbase, Cicle, HashKey, Paxos, Revolut, Ripple and others.

BitGo now offers digital payment token services in Singapore

BitGo’s MPI license acquisition comes a few months after the company received in-principle approval for the license in January 2024.

With the new license, BitGo is now officially allowed to offer regulated digital payment token services, such as custody and trading in Singapore.

Before receiving the license, BitGo served users in Singapore and the Asia-Pacific region. The offering only included custody services from the US South Dakota Trust and hot wallets — which are not regulated products and are rather tech-only, a spokesperson for BitGo told Cointelegraph.

“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,” BitGo Singapore CEO Youngro Lee stated.

Singapore takes a cautious approach to developing as a crypto hub

One of only three city-states in the world, Singapore has emerged as a significant hub for cryptocurrency and blockchain technology.

Despite issuing licenses to multiple crypto firms, the government of Singapore has still somewhat hardened its regulatory stance on crypto, particularly after the local hedge fund Three Arrows Capital went bankrupt during the 2022 crypto bear market.

According to BitGo CEO Mike Belshe, Singapore is a leading financial center in Asia. He stated:

“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.”

In July 2024, Singapore’s updated Money Laundering National Risk Assessment pointed out significant risks stemming from digital payment token (DPT) service providers.

In April 2024, the MAS announced amendments to the country’s Payment Services Act to expand the scope of regulated services related to digital payment token service providers.