Coinbase Secures Singapore License
Coinbase acquired MPI license of Singapore, enabling expanded crypto services and collaborations in the region.
Beyond excited to announce that Coinbase Singapore has received an MPI license from MAS!
As Singapore Blockchain Week highlighted, the energy and excitement of as a web3 hub is unmistakable.
Excited to double down in this market and provide trusted solutions for consumers,…
— hassan.lens (@Hassan_NY) October 2, 2023
Coinbase, one of the leading cryptocurrency exchanges based in the United States, has recently made advancements in the Asian market. The Monetary Authority of Singapore (MAS) awarded the exchange a Major Payment Institution (MPI) license on October 1st. This is a significant step forward for Coinbase as it paves the way for the company to expand its range of digital payment token services in Singapore.
This MPI license isn’t the first interaction between MAS and Coinbase. A year prior, Coinbase received an in-principle approval in the Lion City. The upgraded MPI license now allows Coinbase to cater to both individual and institutional clients in Singapore, offering a wider variety of digital payment services.
One of the standout advantages of the MPI license is the freedom from transaction restrictions. Typically, firms without this license face a cap of 3 million Singapore dollars ($2.2 million) for a single payment service. Furthermore, without an MPI license, there’s a cumulative monthly limit of 6 million SG$ ($4.4 million) on transactions for multiple payment services. The only exceptions are e-money account issuance and money-changing services. With the MPI license in hand, Coinbase doesn’t have to worry about these ceilings.
In their announcement, Coinbase expressed their commitment to the thriving crypto and Web3 community in Singapore. The license isn’t just a recognition of their efforts, but it is also seen as an entrustment of responsibility towards the growing market.
Coinbase’s Growth Strategy
Coinbase has always shown an interest in tailoring its services to the Singaporean market. March 2023 saw the launch of PayNow and FAST bank transfers by the company. They’ve even integrated SingPass, Singapore’s digital identity service, to make the onboarding process more streamlined. Collaboration is also on Coinbase’s agenda. The company has joined forces with notable local blockchain enterprises such as Nansen.ai, Blockdaemon, and Infura. The aim? To broaden its offerings, introducing services like the Base blockchain and wallet-as-a-service.
The company recognizes the importance of the Singapore market. According to their recent studies, over 30% of Singaporeans have either currently or previously owned cryptocurrencies. Adding to this, Singapore is a hub for the Web3 industry, housing over 700 Web3 enterprises. Such factors undeniably make Singapore a prime location for the development of the crypto and Web3 sectors.
Other prominent crypto firms have also identified the value of the MPI license. Blockchain.com, a crypto data and wallet provider, secured the license in August 2023. Similarly, the USD Coin issuer, Circle, acquired the MPI license in June 2023. Following them was the crypto exchange Crypto.com.
With this momentum, Coinbase’s expansion in Singapore shows promise for both the exchange and the crypto enthusiasts in the region.
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Filed under: Bitcoin - @ October 2, 2023 10:17 pm