California-based cryptocurrency custody firm BitGo has achieved a significant milestone by obtaining a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This regulatory approval marks a pivotal step in BitGo’s global expansion, positioning the firm to offer an enhanced range of digital payment services in one of the world’s most crypto-friendly regions.
BitGo’s Strategic Expansion into Asia
The announcement on August 7 confirmed that BitGo, previously limited to offering custody services through its U.S.-based South Dakota Trust and hot wallets, can now fully engage in regulated digital payment token services in Singapore. This license not only allows BitGo to offer a broader range of payment services without the restrictions faced by smaller entities but also positions the company alongside major industry players like Coinbase, Circle, and Ripple, all of whom hold similar licenses in Singapore.
New Era of Digital Payment Services in Singapore
With the MPI license, BitGo is poised to transform its operations in the Asia-Pacific region. The firm can now offer comprehensive services, including custody and trading of digital assets, under the full regulatory framework of Singapore. This expansion is particularly significant given Singapore’s status as a leading financial hub in Asia, known for its cautious yet progressive approach to cryptocurrency regulation.
Youngro Lee, CEO of BitGo Singapore, emphasized the importance of this license, stating, “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 Role as a Crypto Hub
Despite its reputation as a major hub for cryptocurrency and blockchain technology, Singapore has taken a careful approach to regulation, especially following the collapse of the local hedge fund Three Arrows Capital during the 2022 crypto bear market. The MPI license is part of Singapore’s broader strategy to regulate digital payment token service providers while fostering innovation in the financial sector.
BitGo’s CEO, Mike Belshe, highlighted Singapore’s significance, 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.”
Conclusion
BitGo’s acquisition of the MPI license is a strategic move that underscores its commitment to expanding its footprint in the Asia-Pacific region. As Singapore continues to solidify its role as a global leader in cryptocurrency regulation, BitGo’s enhanced services are set to meet the growing demand for secure, regulated digital asset solutions in the region.
Also Read: Crypto Regulation: Singapore Implements Stringent Guidelines