Coinbase, a United States-based cryptocurrency exchange, is expanding its presence in Singapore following a significant regulatory milestone. On October 1, Coinbase announced that it had been granted a major payments institution (MPI) license by the Monetary Authority of Singapore (MAS). This license represents a major step forward for Coinbase in Singapore, where it had previously received in-principle approval one year ago. This initial approval allowed Coinbase to offer its digital payment token services to both individuals and institutions in the country.
Under the regulatory framework established by MAS, companies holding MPI licenses are authorized to provide payment services without being subject to the S$3 million (approximately US$2.2 million) transaction limit. They are also exempt from the S$6 million (around US$4.4 million) monthly transaction limit for two or more payment services. This license marks a significant development for Coinbase, allowing it to offer a broader range of services to its users in Singapore.
Coinbase highlighted that this licensing achievement is not only a validation of its operations but also signifies a responsibility to support Singapore's growing cryptocurrency and Web3 communities. Over the past months, Coinbase has been actively working on tailored products and services for the Singaporean market. This includes the introduction of PayNow and FAST bank transfers in March 2023, as well as integration with Singapore's digital identity service, SingPass, to streamline user onboarding. Moreover, Coinbase has been collaborating with key local blockchain firms like Nansen.ai, Blockdaemon, and Infura to expand its offerings, such as Base Blockchain and Wallet-as-a-Service.
Singapore holds a significant position in the cryptocurrency industry, with Coinbase recognizing it as an important market for its growth. Over 30% of Singaporeans are reported to have used or owned cryptocurrencies, according to recent surveys. Additionally, Singapore boasts over 700 Web3 companies, making it a strategic market for the cryptocurrency and Web3 economy.
This move by Coinbase aligns with the trend of global cryptocurrency companies obtaining MPI licenses in Singapore, demonstrating the country's growing significance in the crypto space. Earlier, major industry players like Blockchain.com and Circle received similar licenses, further establishing Singapore as a hub for crypto and blockchain innovation.
