The largest cryptocurrency exchange in the US, Coinbase, announced that Singapore’s central bank had given its approval for it to provide payment services in the city-state.
Individuals and institutions can now use services for digital payment tokens thanks to the in-principle approval that the central bank began granting to crypto firms last year. The firms are also subject to regulation by the central bank under the Payment Services Act.
Coinbase, which called it a “important milestone,” said in a statement that it had been expanding its presence in Singapore and that it presently had roughly 100 people there, with product engineers making up the majority of new hires.
Hassan Ahmed, Coinbase’s regional director for Southeast Asia, stated:
“We see Singapore as a strategic market and a global hub for Web3 innovation.”
In 2020, under a new framework, some 180 crypto firms applied for a crypto payments licence to the Monetary Authority of Singapore. 17 in-principle permissions and licences have been granted by Singapore following a thorough due diligence procedure that is still underway.
Along with Coinbase, other companies with licences include Crypto.com and DBS Vickers, the brokerage operated by Singapore’s largest bank, DBS.
Due to Singapore’s success in drawing businesses providing digital asset services from China, India, and other nations in recent years, the city-state has emerged as a major hub in Asia.
But there have also been numerous instances of crypto fallouts in the city state. Three Arrows Capital, a Singapore-based cryptocurrency hedge fund, started its liquidation in June after failing to fulfil debts totaling hundreds of millions of dollars.
The demise of the cryptocurrencies Luna and TerraUSD in May had a negative impact on the hedge fund. Both coins were created by Terraform Labs, a Singapore-based corporation. The South Korean police are actively looking for Do Kwon, the founder of Terraform Lab.
However, the head of the MAS has attempted to disassociate Singapore from these businesses, claiming in July that organisations like Three Arrows and Terraform Labs were “so-called Singapore-based” businesses with “nothing to do” with the city-crypto state’s rules.
Singapore is to implement new rules that will make trading cryptocurrencies more challenging for individual investors.
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