US cryptocurrency exchange Coinbase expands operations in Singapore with regulatory approval

Regulatory approval secured

Coinbase, a leading cryptocurrency exchange based in the United States, has received regulatory approval from the Monetary Authority of Singapore (MAS). The approval comes in the form of a Major Payment Institution (MPI) license, which allows Coinbase to expand its digital payment token services to individuals and institutions in Singapore. This follows Coinbase's initial in-principle approval in the country last year.

Benefits of the MPI license

The MPI license grants Coinbase certain privileges. According to MAS, MPI-licensed firms are not subject to transaction limits, such as the 3 million SGD ($2.2 million) cap for any payment service. These companies are also exempt from the 6 million SGD ($4.4 million) limit on monthly transactions for two or more payment services, except for e-money account issuance and money-changing services.

Validation and responsibility

Obtaining the MPI license is seen as a validation of Coinbase's operations and a recognition of its commitment to the crypto and Web3 community in Singapore. Coinbase believes that Singapore is a vital market, as more than 30% of Singaporeans are either current or past owners of cryptocurrencies. The country is also home to over 700 Web3 companies, making it an important market for the growth of the crypto and Web3 economy.

Expanding products and services

Coinbase has been actively developing products and services tailored specifically for the Singapore market. In March 2023, the exchange launched PayNow and FAST bank transfers in Singapore. It has also integrated Singapore's digital identity service SingPass to simplify the onboarding process for users. Additionally, Coinbase has been collaborating with major local blockchain firms to expand its products, including the Base blockchain and wallet-as-a-service.

Growing interest in Singapore

Coinbase's expansion in Singapore reflects the increasing interest and demand for cryptocurrencies in the country. With more than 30% of Singaporeans involved in the crypto market, Singapore has become a significant location for the industry. Major global cryptocurrency firms, such as Blockchain.com and Circle, have also obtained the MPI license in Singapore in recent months.