Coinbase Expands Operations in Singapore with Regulatory Approval
United States-based cryptocurrency exchange Coinbase has received regulatory approval from the Monetary Authority of Singapore (MAS) to expand its operations in the country. The company announced on Oct. 1 that it has obtained a Major Payment Institution (MPI) license, allowing it to offer digital payment token services to individuals and institutions in Singapore.
Benefits of the MPI License
The MPI license grants Coinbase the authority to conduct payment services without being subjected to transaction limits. Unlike other payment service providers, which are limited to SGD 3 million ($2.2 million) for any payment service and SGD 6 million ($4.4 million) for two or more payment services, Coinbase is free from these limits.
Commitment to Singapore’s Crypto Community
Coinbase considers the new license as a validation of its operations and a responsibility towards Singapore’s growing crypto and Web3 community. The company has been actively developing products and services specifically for Singapore, including PayNow and FAST bank transfers launched in March 2023. It has also integrated SingPass, Singapore’s digital identity service, for simplified onboarding.
Singapore as a Vital Market
In a recent survey conducted by Coinbase, it was found that over 30% of Singaporeans are current or past owners of cryptocurrencies. Recognizing the significance of this market, Coinbase stated that Singapore is home to over 700 Web3 companies, making it a pivotal market for the growth of the crypto and Web3 economy.
Industry Trends in Singapore
Coinbase joins other major global cryptocurrency firms in securing Singapore’s MPI license. Blockchain.com became the 12th firm to receive the license in August 2023, followed by Circle, the issuer of the USD Coin (USDC) stablecoin, and Crypto.com. The increasing number of companies obtaining regulatory approval demonstrates the importance of Singapore in the cryptocurrency industry.
Hot Take: Coinbase Expands in Singapore Amid Growing Crypto Adoption
Coinbase’s expansion in Singapore through its MPI license marks a significant milestone for the company’s presence in Asia. With more than 30% of Singaporeans involved in cryptocurrencies, Singapore has become a vital market for Coinbase. The country’s support for the crypto and Web3 community, along with its thriving ecosystem of Web3 companies, presents immense growth opportunities. By securing regulatory approval and actively developing tailored products and services, Coinbase is positioning itself to cater to the increasing demand for digital payment token services in Singapore.
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