Coinbase Secures Payment Institution License in Singapore

Coinbase, the prominent cryptocurrency exchange operator, has achieved a significant milestone in its international expansion efforts. Today, the Monetary Authority of Singapore (MAS) officially granted Coinbase a Major Payment Institution (MPI) license, solidifying its position in the Singaporean market.

Regulatory Green Light

After receiving in-principal approval late last year, Coinbase has now been awarded the coveted MPI license, signaling a major step forward for the company’s operations in the region. This news is especially significant as it faces a challenging regulatory environment in its home market, the United States.

In the U.S., Coinbase has been entangled in a legal dispute with the Securities and Exchange Commission (SEC) since June, accused of operating as an unregistered broker and exchange in violation of federal securities laws.

Hassan Ahmed, the country director of Coinbase Singapore, expressed his satisfaction, stating, “This license enshrines our commitment to the market and marks the end of our licensing journey. Our experience in Singapore in some ways contrasts what’s going on in the U.S. By providing this level of regulatory clarity and by providing clear rules that the industry has to play by, that’s important for us as we’re thinking about our international strategy.”

Ahmed also highlighted their close collaboration with MAS, emphasizing the company’s involvement in providing policy input.

Coinbase Expanding Horizons

The issuance of the MPI license opens new avenues for Coinbase’s Singapore entity. It enables the exchange to expand its range of Digital Payment Token services, catering to both retail and institutional customers within the region. This move further strengthens its ties with local institutions, with Standard Chartered serving as its local banking partner.

Coinbase has made strategic adjustments to align with Singapore’s specific demands. They have introduced user-friendly account funding options, including PayNow and FAST bank transfers. Furthermore, Coinbase offers fee-free purchases of USDC, the stablecoin, as part of their tailored product offerings.

Singapore’s Crypto-Friendly Stance

Singapore has garnered a reputation as a crypto-friendly business hub. Despite challenges faced by several crypto-related entities with Singaporean ties over the past year, including Three Arrows Capital, Vauld, and Hodlnaut, MAS remains open to granting licenses to reputable operators.

Coinbase joins the ranks of around a dozen other crypto operators in the region who have secured full licenses. Notably, wallet firms Crypto.com and Blockchain.com also obtained MPI licenses during the summer.

Ahmed praised Singapore’s regulatory approach, stating, “I think Singapore’s a few laps ahead of some of these other crypto hubs. They’ve seen both good actors and bad actors go through, and now they’re uplifting those regulations.”

With the MPI license in hand, Coinbase looks poised to expand its presence and offer a broader range of cryptocurrency services in the dynamic Singaporean market.