Coinbase, the United States-based cryptocurrency exchange, announced on October 1 that it has obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), allowing the company to expand its digital payment token services in Singapore.
This new license comes after Coinbase’s initial approval in principle in Singapore last year, and it signifies a significant milestone for the company’s operations in the country. With the MPI license, Coinbase is authorized to conduct payment services without being subjected to transaction limits of 3 million Singapore dollars ($2.2 million) for any payment service. Additionally, the company is exempted from the 6 million SGD ($4.4 million) limit for monthly transactions for two or more payment services, excluding e-money account issuance and money-changing services.
In the announcement, Coinbase stated that the acquisition of this license is not only a validation of its operations but also a responsibility towards the growing crypto and Web3 community in Singapore. The company has been actively developing products and services tailored specifically for the Singapore market. In March 2023, Coinbase launched PayNow and FAST bank transfers in Singapore to provide seamless and convenient payment options for its users. The company also integrated Singapore’s digital identity service, SingPass, to simplify the onboarding process for new users. Furthermore, Coinbase has collaborated with local blockchain firms like Nansen.ai, Blockdaemon, and Infura to enhance its products such as the Base blockchain and wallet-as-a-service.
Coinbase recognizes Singapore as a vital market based on its recent survey, which found that over 30% of Singaporeans are current or past owners of cryptocurrencies. The exchange emphasized that Singapore’s status as home to over 700 Web3 companies makes it a pivotal market for the growth of the crypto and Web3 economy.
It is worth noting that several other major global cryptocurrency firms have also secured Singapore’s MPI license in recent months. In August 2023, Blockchain.com became the 12th company to receive the license, while Circle, the issuer of the USDC stablecoin, obtained it in June 2023. Coinbase’s announcement reflects the increasing interest and recognition of Singapore as a leading hub for cryptocurrency and blockchain innovation.
Coinbase did not immediately respond to Cointelegraph’s request for comment.
Overall, Coinbase’s securing of the MPI license from MAS highlights the company’s commitment to expanding its services in Singapore and catering to the growing demand for cryptocurrencies in the country. With this regulatory approval, Coinbase aims to further strengthen its position in the Singaporean market and contribute to the development of the crypto and Web3 economy. The involvement of major global cryptocurrency firms in Singapore reinforces the country’s reputation as a favorable environment for cryptocurrency businesses, fostering innovation and growth in the industry.