Coinbase Secures Major Payment Institution License from Singapore's Monetary Authority
Coinbase Singapore announced on October 1, 2023, that it has obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This license follows the company's initial "In Principle Approval" and signifies Coinbase's commitment to the Singaporean market. The license allows Coinbase to expand its digital payment token services to both individuals and institutions in the country.
Coinbase is not the first company to secure an MPI license from MAS. In early June, Circle announced its receipt of an MPI license, followed by Blockchain.com, which made its announcement on August 7 after receiving the license on August 1. Crypto.com also joined the ranks on June 1. These companies are authorized to provide digital payment token services to institutional and accredited investors in Singapore, highlighting the competitive and regulated landscape of the crypto market in the city-state.
Singapore has emerged as a significant player in the crypto and Web3 space. According to surveys, 25% of Singaporeans view cryptocurrency as the future of finance, and 32% are either current or past crypto owners. The city-state is also home to over 700 Web3 companies, making it a crucial market for the growth of the crypto and Web3 economy.
Coinbase has been proactive in tailoring its offerings to the Singaporean market. Earlier this year, the company introduced convenient funding options like PayNow and FAST bank transfers. It also integrated SingPass, Singapore's trusted digital identity system, to streamline the onboarding process. Additionally, Coinbase introduced no-fee purchases of USDC with Singapore Dollars (SGD).
Coinbase has also been active in forming partnerships and making investments in the region. The company has collaborated with local developer communities and key partners like Nansen.ai, Blockdaemon, and Infura. Over 15 of Coinbase's investments through Coinbase Ventures are rooted in Singapore. The company has also been involved in training and hiring initiatives at its Singapore tech hub.
The Monetary Authority of Singapore is a significant regulatory partner for Coinbase. The newly acquired license is not just an approval but represents a shared commitment between Coinbase and MAS to support and grow the local crypto and Web3 community.
Coinbase's acquisition of the MPI license from MAS is a significant development that underscores the company's strategic focus on Singapore as a vital market. It also reflects the broader trend of international markets crafting innovative policies to emerge as crypto hubs. With this license, Coinbase not only validates its operations but also takes on a promise and responsibility to the growing crypto and Web3 community in Singapore. The license places Coinbase in a competitive but regulated landscape, alongside other key players like Circle, Blockchain.com, and Crypto.com, further emphasizing the importance of regulatory compliance in the rapidly evolving crypto market.
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