TL;DR
- The license enables Coinbase to expand its Digital Payment Token offerings in the area.
- The American crypto exchange seems to be trying to build a world presence in case the United States goes rogue with crypto.
Coinbase Can Now Provide Crypto Trading and Payment Services in Singapore
Singapore has now fully licensed Coinbase, allowing the cryptocurrency exchange to expand its Digital Payment Token services in the area.
The Monetary Authority of Singapore (MAS) recently provided Coinbase, a leading crypto exchange platform, with a Major Payment Institution license.
This comes after MAS had given its initial approval last year, as per the latest statement.
Meanwhile, Coinbase is currently embroiled in a significant disagreement with U.S. regulators.
In June, the U.S. Securities and Exchange Commission accused the firm of acting as an unauthorized broker and exchange, contradicting federal securities regulations.
“Securing this license solidifies our dedication to the region and signifies the culmination of our licensing endeavor. Singapore’s regulatory transparency and established guidelines greatly influence our global approach.”
Hassan Ahmed, the country director of Coinbase Singapore
Ahmed also acknowledged the close working relationship Coinbase has maintained with MAS, noting their significant contribution to policy discussions.
Singapore’s Perspective on Cryptocurrency
The new license allows Coinbase’s Singapore branch to expand its Digital Payment Token services to individual and institutional clients, further strengthening its relationship with local establishments.
The company has partnered with Standard Chartered as its primary local bank.
Coinbase has introduced user-friendly account funding methods to cater to local needs, including PayNow and FAST bank transfers. Additionally, they have launched fee-free transactions for the USDC stablecoin.
Singapore is recognized as a welcoming environment for cryptocurrency.
However, its supportive attitude has been challenged recently due to issues with various crypto companies connected to the region, such as Three Arrows Capital, Vauld, and Hodlnaut.
Just last week, Su Zhu, the co-founder of Three Arrows, was detained in Singapore for not cooperating with the liquidators of the collapsed hedge fund.
Despite these challenges, MAS continues to approve licensing applications. Coinbase is now among a select group of crypto enterprises in the region to have been granted full licenses.
Notably, both Crypto.com and Blockchain.com also received MPI licenses earlier this year.
Reflecting on Singapore’s regulatory environment, Ahmed remarked that Singapore seems several steps ahead of other crypto centers.
They’ve witnessed the actions of both reputable and questionable entities and are now refining their regulations accordingly.
Is Coinbase Afraid of The SEC and US Government?
After the SEC accused Coinbase of acting as an unauthorized broker and exchange, contradicting federal securities regulations, the crypto exchange started moving internationally.
In the latest development, the American crypto exchange registered with Spain’s Central Bank received regulatory approval to list perpetual futures trading to users outside the US and received an operating license in Singapore.
Do you think that Coinbase will quit the American market? We’ll see…
Shawn Munir
Shawn Munir is the CEO of Coinweb.com and spearheads all the collaborative partnerships for the platform. He bought his first Bitcoin in 2017 and never looked back. He is also an investor in 200+ Web3 startups and is considered an expert in the field. Before building Coinweb with his co-founders, he co-founded Presail, a management platform designed for companies and investors to manage their investments in Web 3. In addition to his entrepreneurial endeavors, Shawn serves on the United Nations...
