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Crypto companies continue to take steps towards the frequently discussed legal regulations in recent years. Accordingly, the crypto asset custody company BitGo has managed to obtain approval for the Major Payment Institution (MPI) license from Singapore’s top financial regulator through its local entity. The company announced the in-principle approval to the public through a share on X.
BitGo Succeeds in Gaining Approval from Singapore
BitGo has managed to obtain the in-principle license approval from the Monetary Authority of Singapore (MAS). The relevant license will allow BitGo to operate while awaiting full permission from the regulatory body and provide payment services with crypto assets to residents of the city-state.
According to MAS, MPI licensed companies have the authority to conduct payment services without being subject to a transaction limit of 3 million Singapore dollars, equivalent to 2.2 million US dollars. Companies that receive license approval are also exempt from a monthly transaction limit of 6 million Singapore dollars, equivalent to 4.4 million US dollars, for two or more payment services, excluding e-money account opening and exchange services on the platform.
BitGo and Legal Regulations
This approval comes after BitGo obtained a crypto custody license in Germany from the Federal Financial Supervisory Authority (BaFin) on October 24, 2023. Before receiving the BaFin license, BitGo had been storing crypto assets like Bitcoin under the supervision of BaFin authorities since 2019.
Several major crypto organizations, including Coinbase, Crypto.com, and Ripple Labs, have qualified for the MPI license in Singapore. While the country’s government aims to promote the crypto sector without speculation, it also seeks to protect its citizens with appropriate legal regulations.
In December 2023, Hashdex chose BitGo as the Bitcoin custodian for its application to become a spot exchange-traded fund issuer in the US. The US Securities and Exchange Commission is expected to approve the first spot BTC ETF applications in the US by January 10.
In August 2023, BitGo raised $100 million in a Series C funding round, bringing the company’s valuation to $1.75 billion. The company plans to use the funds for strategic acquisitions and to expand BitGo’s regulated custody wallet and infrastructure solutions.
