Key Takeaways
- License grants the exchange the authority to conduct payment services without the prior constraints of transaction limits
- Coinbase is now exempt from the monthly transaction limit of 6 million SGD ($4.4 million) for two or more payment services,
In a significant development, Coinbase, the renowned U.S.-based cryptocurrency exchange, has secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This regulatory approval, disclosed on October 1st, paves the way for Coinbase’s expansion into the dynamic Singaporean market.
The MPI license holds paramount importance for Coinbase as it grants the exchange the authority to conduct payment services without the prior constraints of transaction limits, which previously capped payment services at 3 million Singapore dollars ($2.2 million). Additionally, Coinbase is now exempt from the monthly transaction limit of 6 million SGD ($4.4 million) for two or more payment services, excluding e-money account issuance and money-changing services.
Coinbase, in an official blog post, announced its plans to leverage this newfound license to extend its digital payment token services to both individuals and institutions in Singapore. This expansion aligns with Coinbase’s ongoing efforts in the region, which began with the establishment of a tech hub in Singapore last year. Since then, the company has been diligently recruiting and training product managers and engineers specializing in Web3 technology.
Notably, Coinbase’s approach to regulatory compliance emphasizes its belief that well-thought-out and practical regulations are essential catalysts for growth in the crypto and blockchain space.
This development in Singapore follows Coinbase’s recent regulatory approval in Bermuda, where it gained the green light to allow eligible non-U.S. retail customers to participate in perpetual futures trading. This accomplishment is part of Coinbase’s Phase II international expansion strategy, aptly named “Go Broad, Go Deep.”
Coinbase’s dedication to the Singaporean market is evident in its tailored services. In March 2023, the exchange introduced PayNow and FAST bank transfers in Singapore, simplifying payment processes for users. The integration of Singapore’s SingPass digital identity service further streamlined user onboarding.
Collaboration has been instrumental in Coinbase’s Singaporean expansion. The exchange has actively partnered with local blockchain firms like Nansen.ai, Blockdaemon, and Infura to enhance its product offerings, including the Base blockchain and wallet-as-a-service.
Singapore, with its thriving crypto and Web3 ecosystem, has become a focal point of Coinbase’s growth strategy. A recent survey conducted by the exchange revealed that over 30% of Singaporeans have either held or currently hold cryptocurrencies, underscoring the nation’s enthusiasm for digital assets.
Coinbase recognizes Singapore’s importance as a burgeoning hub for the crypto and Web3 economy, boasting more than 700 Web3 companies within its borders. The acquisition of the MPI license not only validates Coinbase’s operations but also underscores its commitment to nurturing the crypto and Web3 community in Singapore.
In recent months, MAS has been actively granting licenses to cryptocurrency firms. Both Crypto.com and Circle received digital token licenses in June, while in August, Blockchain.com secured an MPI license. These developments reflect Singapore’s proactive stance in regulating the cryptocurrency industry, positioning itself as a leader in the global crypto landscape.
