Coinbase, the US-based cryptocurrency exchange, has received regulatory approval from the Monetary Authority of Singapore (MAS) to expand its digital payment token services in the country. This Major Payment Institution (MPI) license comes one year after Coinbase’s initial in-principle approval, allowing it to offer services to individuals and institutions without transaction and monthly limits.
Coinbase has obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), signaling a significant expansion of its operations in the country.
Expanding Digital Payment Token Services
With the MPI license, Coinbase is now authorized to expand its digital payment token services to individuals and institutions in Singapore. This marks a significant step in the company’s growth strategy in the region.
MPI-licensed firms, such as Coinbase, are not subject to the transaction limits of 3 million Singapore dollars (SGD) for any payment service. Additionally, they are exempt from the 6 million SGD limit on monthly transactions for two or more payment services, except for e-money account issuance and money-changing services.
Validation of Coinbase’s Operations
Coinbase views the newly acquired license as both a validation of its operations and a responsibility to the growing crypto and Web3 community in Singapore. This recognition underscores Coinbase’s commitment to regulatory compliance and expansion in the region.
Coinbase has been actively developing products and services specifically designed for the Singaporean market. Initiatives include the launch of PayNow and FAST bank transfers in March 2023, as well as the integration of Singapore’s digital identity service, SingPass, to streamline onboarding processes.
Coinbase has fostered partnerships with prominent local blockchain companies, such as Nansen.ai, Blockdaemon, and Infura. These collaborations aim to enhance Coinbase’s products, including the Base blockchain and wallet-as-a-service offerings.
Significance of the Singaporean Market
Singapore has emerged as a vital market for Coinbase, with more than 30% of Singaporeans identified as current or past owners of cryptocurrencies in a recent survey. The country is also home to over 700 Web3 companies, making it a pivotal hub for the crypto and Web3 economy.
Coinbase’s MPI license approval in Singapore reflects its commitment to compliance and its strategic vision for expansion in a dynamic and growing cryptocurrency market.