BitGo Secures Major Payment Institution License in Singapore

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As a seasoned crypto investor with roots deeply entrenched in both the Western and Asian markets, I can’t help but feel a surge of optimism upon hearing about BitGo’s recent regulatory milestone in Singapore. Having navigated the often-treacherous waters of the cryptocurrency landscape for years, it’s heartening to see a reputable player like BitGo not only surviving but thriving amidst the ever-evolving regulatory landscape.

In simpler terms, the digital asset custodian, BitGo, based in California, has obtained a significant payment institution license from the Monetary Authority of Singapore (MAS). This regulatory approval is a significant step in BitGo’s growth strategy within the Asian market.

Under the terms of this license, BitGo is now authorized to provide various digital payment token (DPT) services such as custodial and trading services, for their clients based in Singapore.

After receiving MAS’s initial approval (IPA), BitGo moved forward with acquiring the full license. This step signifies their commitment to expanding in the region. Now that they have the license, BitGo can provide Singaporean clients with a wide range of regulated Digital Payment Token (DPT) services. Among these are their top-tier cold storage custody solution, securely stored in a class III vault and insured.

Mike Belshe, CEO of BitGo, highlighted that their company stands alone in Singapore for providing such a wide range of services.

Last November, our company gained control over a custody business situated in Germany following successful acquisition of the necessary licensing from the German Federal Financial Supervisory Authority (BaFin).

Robust Regulations

BitGo’s entrance into Singapore coincides with the country strengthening its status as a trailblazer in cryptocurrency within Asia. The legal infrastructure here, founded on the Payment Services Act (PSA) of 2019, is designed to foster a secure and regulated environment for cryptocurrency services.

As a crypto investor operating within Singapore, I am bound by the Payments Services Act (PSA). This regulation requires me to seek approval from the Monetary Authority of Singapore (MAS) and comply with stringent anti-money laundering (AML) and counter-terrorism financing (CFT) guidelines. Furthermore, it is essential for me to establish robust risk management and cybersecurity protocols to maintain compliance within this digital financial landscape.

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 Monetary Authority of Singapore (MAS) advocates for responsible application of blockchain technology, considering the challenges that come with this sector. Lately, they’ve published a fresh report on anti-money laundering risks, singling out crypto tokens and related service providers as high-risk financial areas.

Crypto Adoption in Singapore

Singapore is playing a significant role in fostering the growth of cryptocurrencies within the Asia-Pacific area. In the year 2023, approximately $627 million was invested into Singapore’s cryptocurrency market through 88 separate transactions.

Beyond offering an appealing financial climate, with no tax on capital gains, Singapore stands out for investors. In fact, as of 2024, Singapore boasts one of the world’s highest cryptocurrency ownership rates, trailing only the UAE in this aspect. It’s worth mentioning that roughly a quarter of Singapore’s population holds digital assets.

The fact that this area is widely accepted as a suitable location makes it an attractive choice for cryptocurrency businesses seeking to set up operations and strengthen their influence in Asia.

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2024-08-08 16:19