- Coinbase Singapore obtains a Major Payment Institution license from the Monetary Authority of Singapore, broadening digital payment token services.
- The firm also showcased its engagement in the region through training initiatives at their Singapore tech hub and partnerships with local industry associations.
- The acquisition comes amidst regulatory hurdles for Coinbase in the United States.
Coinbase Singapore achieved a significant milestone by securing a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), as confirmed on October 2. This key development followed an earlier ‘In Principle Approval’ and reflected a substantial commitment to the Singaporean market by facilitating a broader range of Digital Payment Token services for both individual and institutional clients.
Hassan Ahmed, the country director of Coinbase Singapore, highlighted the importance of clear regulatory pathways, stating:
This license enshrines our commitment to the market and marks the end of our licensing journey […] By providing this level of regulatory clarity and by providing clear rules that the industry has to play by, that’s really important for us as we’re thinking about our international strategy.
The acquisition marked a significant phase in Coinbase’s international expansion, notably amidst a climate of regulatory scrutiny. This development came during a time of growing interest in cryptocurrencies among Singaporeans, with a survey indicating 25% viewing crypto as the future of finance and 32% having had some engagement with crypto assets. Furthermore, Singapore, home to over 700 Web3 companies, has emerged as a crucial market for this nascent industry.
Coinbase’s active engagement in the region transcends beyond merely offering products. Initiatives such as training and hiring at their Singapore tech hub were evident. Solid alliances with local industry associations like ACCESS, the Singapore Fintech Association, and the Blockchain Association of Singapore have also been prominent facets of their regional engagement. Additionally, region-specific investments through Coinbase Ventures, with over 15 of these investments rooted in Singapore, added to the firm’s commitment.
Furthermore, Coinbase has also collaborated with the local developer community and key partners alongside innovative solutions like Base blockchain and Wallet-as-a-Service, demonstrating a holistic approach toward nurturing a robust crypto ecosystem in Singapore. Over the past years, the firm has achieved VASP registrations in Spain, Italy, Ireland, and the Netherlands, reinforcing its international regulatory compliance.
Amidst this progress, in the US, Coinbase encountered legal challenges with the U.S. Securities and Exchange Commission, contrasting its regulatory experience in Singapore. Furthermore, in Singapore, the company forged a partnership with Standard Chartered and introduced new funding options, including PayNow and FAST bank transfers, the SingPass onboarding system, and fee-free USDC purchases.
