It is critical for exchanges, which have an important place in the cryptocurrency market, to operate legally in many regions in terms of adoption and accessibility of the field. In a recent development, cryptocurrency exchange operator Coinbase has received an important regulatory license in Singapore. Here are the details…
Coinbase now has a Singapore license
The Monetary Authority of Singapore has granted the company a Major Payments Institution license after granting in-principle approval late last year, according to an announcement today. The news comes as Coinbase is locked in a bitter dispute with regulators in its home market, the United States. The U.S. Securities and Exchange Commission sued the company in June, alleging it operated as an unregistered broker and exchange in violation of federal securities laws. Hassan Ahmed, country director of Coinbase Singapore, pointed out in an interview. “This license demonstrates our commitment to the market and marks the end of our licensing journey,” he said. He also added:
Our experience in Singapore contrasts in some ways with what is happening in the United States. By providing this level of regulatory clarity and providing clear rules that the industry must follow, that’s really important to us as we think about our international strategy. Coinbase works closely with MAS and provides a lot of policy input.
Singapore’s stance on cryptocurrency
The license paves the way for Coinbase’s Singapore presence to offer a broader range of Digital Payment Token services to both retail and institutional customers in the region, while strengthening its ties with local institutions. Standard Chartered is the local banking partner in this respect. The company said it has adapted its products to meet local demands by offering free purchases of stablecoin USDC, along with simple account funding options including PayNow and FAST bank transfers. As a business hub, Singapore is seen as relatively crypto-friendly. But its stance on the sector was tested last year with crises at several Singapore-linked crypto companies, including Three Arrows Capital, Vauld and Hodlnaut.
Three Arrows co-founder Su Zhu was arrested in Singapore last week after he refused to cooperate with liquidators of the failed hedge fund. However, MAS still remains willing to accept undergraduate applicants. Coinbase joins about a dozen other crypto operators that are fully licensed in the region. Wallet firms Crypto.com and Blockchain.com both received MPI licenses over the summer. “I think Singapore is several laps ahead of other crypto hubs,” Ahmed said. “They’ve seen both good actors and bad actors come through, and now they’re raising those regulations,” he added.
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