Coinbase, a prominent United States-based cryptocurrency exchange, is expanding its operations in Singapore following significant regulatory approval from the country’s central bank.
On October 1st, Coinbase announced that it had secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS).
This milestone comes one year after Coinbase initially received in-principle approval in Singapore, granting the company the authority to extend its digital payment token services to individuals and institutions within the nation.
The MPI license allows approved firms to conduct payment services without being bound by transaction limits, specifically the 3 million Singapore dollars ($2.2 million) cap for any payment service and the 6 million SG$ ($4.4 million) monthly transaction limit for two or more payment services, excluding e-money account issuance and money-changing services, as outlined by MAS.
Coinbase views this newly acquired license as a validation of its operations and as a commitment to the burgeoning crypto and Web3 community in Singapore.
The company has been actively developing products tailored for the Singaporean market, such as the launch of PayNow and FAST bank transfers in March 2023.
Furthermore, Coinbase has integrated Singapore’s digital identity service, SingPass, to streamline onboarding procedures.
Additionally, the exchange has collaborated with prominent local blockchain companies like Nansen.ai, Blockdaemon, and Infura to expand its product offerings, including Base blockchain and wallet-as-a-service.
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The exchange expressed its commitment to Singapore as a pivotal market, citing its recent survey that revealed over 30% of Singaporeans have been current or past owners of cryptocurrencies. Coinbase also highlighted Singapore’s significance in the crypto and Web3 economy, with more than 700 Web3 companies calling the city-state home.
It’s worth noting that Coinbase has not provided a response to Cointelegraph’s request for comment at this time.
This development aligns with a broader trend, as major global cryptocurrency firms increasingly seek to obtain Singapore’s MPI license.
In August 2023, Blockchain.com, a crypto data and wallet provider, became the 12th firm to secure this license. Prior to that, in June 2023, Circle, the issuer of the USD Coin (USDC) stablecoin, also received the MPI license, following in the footsteps of crypto exchange Crypto.com.
Singapore’s regulatory framework is becoming increasingly attractive to cryptocurrency companies, positioning the nation as a significant hub for the crypto and Web3 industries.
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