Leading United States-based cryptocurrency exchange, Coinbase, has successfully expanded its operations in Singapore after receiving a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This significant regulatory approval, announced on October 1, marks a pivotal moment for Coinbase’s strategic growth in the region.
The MPI license, granted after a year of Coinbase’s initial in-principle approval in the Asian country, empowers the exchange to extend its digital payment token services to both individuals and institutions across the country. Unlike many other financial entities, MPI-licensed firms like Coinbase can conduct payment services without the constraints of transaction limits. Specifically, these companies are exempt from the 3 million Singapore dollars ($2.2 million) limit for any payment service and the 6 million SG$ ($4.4 million) monthly transaction cap for multiple payment services, excluding e-money account issuance and money-changing services.
In a statement, Coinbase expressed that this license not only validates their operations but also underscores their commitment to the flourishing crypto and Web3 community in the country. The firm has actively tailored its offerings for the Singaporean market, introducing services such as PayNow and FAST bank transfers in March 2023. Furthermore, Coinbase has streamlined its onboarding process by integrating Singapore’s digital identity service, SingPass. Collaborative efforts with local blockchain companies, including Nansen.ai, Blockdaemon, and Infura, have facilitated the expansion of products like Base blockchain and wallet-as-a-service.
Singapore Becoming a Thriving Hub for Crypto Expansion
The Asian country, a vital market for Coinbase, has proven to be an ideal location for the crypto industry’s growth. Coinbase revealed that more than 30% of Singaporeans are either current or past owners of cryptocurrencies, as per their recent survey. The announcement emphasized the country’s status as a hub for the crypto and Web3 economy, housing over 700 Web3 companies. Coinbase believes that this expansion will not only strengthen its global presence but also contribute significantly to the maturation of the crypto ecosystem in Singapore and beyond.