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BitGo’s entry into Singapore comes at a time when the island nation is cementing its position as a cryptocurrency leader in Asia.
California-based crypto custody firm BitGo has secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This regulatory greenlight marks a major milestone in the company’s expansion into the Asian market.
With this license, BitGo can now legally offer a range of digital payment token (DPT) services, like custody and trading, to its Singaporean customers.
The acquisition of this license follows BitGo’s earlier in-principle approval (IPA) from MAS, which had already signaled the company’s intent to deepen its presence in the region. With the full license now granted, BitGo is poised to offer its Singaporean clients access to a comprehensive suite of regulated DPT services. This includes the company’s renowned cold storage custody solution, insured and built within a class III vault.
BitGo’s Chief Executive Officer, Mike Belshe, pointed out that his company is the only one in Singapore to offer such a comprehensive array of services.
In November last year, the company obtained a custody business in Germany after securing the appropriate license from the German Federal Financial Supervisory Authority (BaFin).
Robust Regulations
BitGo’s entry into Singapore comes at a time when the island nation is cementing its position as a cryptocurrency leader in Asia. Singapore’s legal framework, anchored by the Payment Services Act (PSA) of 2019, aims to create a secure and well-regulated scene for cryptocurrency services.
Under the PSA, service providers must secure approval from MAS and adhere to robust anti-money laundering (AML) and counter-terrorism financing (CFT) rules to operate in Singapore. Additionally, it is mandatory for them to implement strong risk management and cybersecurity measures.
Last month, Hex Trust, a financial services firm catering to institutional investors, also received its MPI license from MAS. Additionally, HashKey OTC, the over-the-counter trading arm of HashKey Group, was also granted this license in April this year.
The MAS has also been encouraging the productive use of blockchain technology while addressing the risks associated with the industry. Recently, the MAS released a new money laundering risk assessment report, identifying crypto tokens and service providers as high-risk financial sectors.
Crypto Adoption in Singapore
Singapore has emerged as a key player in driving cryptocurrency adoption across the Asia-Pacific region. In 2023 alone, the city-state saw around $627 million in funding flow into its cryptocurrency sector, spread across 88 different deals.
Additionally, Singapore’s favorable fiscal environment, particularly the absence of tax on capital gains, further enhances its appeal to investors. As of 2024, Singapore has one of the highest cryptocurrency ownership rates globally, second only to the UAE. Notably, around a quarter of Singapore’s population owns digital assets.
This widespread adoption makes the region an appealing destination for crypto companies aiming to establish and solidify their presence in Asia.
