Coinbase Secures Singapore Payments Licence
Updated: Jan 8
Cryptocurrency exchange Coinbase has announced that it has obtained a full payments licence from the Monetary Authority of Singapore (MAS), allowing it to operate in Singapore.
The Major Payment Institution (MPI) licence will enable Coinbase to offer digital payment token services to individuals and institutions in Singapore, which has become a prominent hub for crypto in Asia.
Coinbase, the world's largest listed crypto exchange, received initial approval for the licence in October last year. Singapore has attracted digital asset companies from various countries, including China and India. According to survey data, 32% of Singaporeans own or have owned cryptocurrencies, making it a crucial market for Coinbase.
While Singapore has seen the rise of the crypto industry, it has also experienced collapses at crypto firms, which have dampened enthusiasm. In 2022, hedge fund Three Arrows Capital and others faced significant challenges. Singapore's state investment firm, Temasek, even reduced the pay of the team that recommended a $275 million investment in now-bankrupt FTX.
The MAS only grants licences to cryptocurrency firms with robust anti-money laundering controls. Out of around 180 companies that applied for the crypto payments licence in 2020, only 14, including the Singapore arms of Revolut and Blockchain.com, have obtained it. The MAS has also expressed its intention to introduce regulations to make it more difficult for retail investors to trade cryptocurrencies.
Coinbase's acquisition of the payments licence in Singapore solidifies its position in the region and highlights the growing importance of Singapore as a crypto hub in Asia. With this licence, Coinbase can expand its services and cater to the increasing demand for digital payment token services in Singapore.
Coinbase has obtained a full payments licence from the Monetary Authority of Singapore (MAS).
The licence allows Coinbase to offer digital payment token services in Singapore.
Singapore has become a prominent hub for crypto in Asia.
Only 14 out of around 180 companies that applied for the crypto payments licence have obtained it.