United States-based cryptocurrency exchange Coinbase is poised for expansion in Singapore after securing a significant regulatory milestone. On October 1, Coinbase announced that it had obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), granting the company the ability to broaden its digital payment token services to individuals and institutions in the country.
This crucial license arrives a year after Coinbase’s initial in-principle approval in Singapore and allows the exchange to conduct payment services without being subject to transaction limits of 3 million Singapore dollars ($2.2 million) for any payment service, as stipulated by MAS. Additionally, Coinbase is exempt from the 6 million SG$ ($4.4 million) monthly transaction limit for two or more payment services, except for e-money account issuance and money-changing services.
Coinbase views this newly acquired license as not only a validation of its operations but also as a responsibility to the growing crypto and Web3 community in Singapore. The exchange has actively tailored its products and services for the Singaporean market, introducing features like PayNow and FAST bank transfers in March 2023. Coinbase has also integrated Singapore’s digital identity service, SingPass, to streamline onboarding processes.
Furthermore, Coinbase has fostered partnerships with prominent local blockchain firms such as Nansen.ai, Blockdaemon, and Infura to enhance its product offerings, including Base blockchain and wallet-as-a-service. Singapore’s vibrant crypto landscape, where more than 30% of Singaporeans are reported to be current or past owners of cryptocurrencies, has solidified the city-state as a crucial market for Coinbase’s growth.
In the announcement, Coinbase emphasized Singapore’s significance, noting that the country hosts over 700 Web3 companies, positioning it as a pivotal market for the crypto and Web3 economy’s continued expansion. Coinbase’s move to expand in Singapore aligns with the broader trend of cryptocurrency exchanges seeking regulatory approvals to operate and serve customers in various regions worldwide.
