Coinbase (NASDAQ:COIN), the global cryptocurrency exchange, announced on Sunday that it has secured a Major Payment Institution (MPI) license in Singapore. This development allows the firm to extend its digital asset payment services to the city-state's retail and institutional customers. The license comes one year after Coinbase received in-principle approval from Singapore's Monetary Authority (MAS).
The MPI license validates Coinbase's operations in Singapore and represents its commitment to the expanding web3 and crypto community. The license also exempts Coinbase from the $2.2 million (S$3 million) transaction limit, as well as the S$6 million ($4.4 million) monthly transaction limit. These exemptions apply to payment services other than e-money account issuance and money-changing services.
Coinbase has been developing new products and services tailored for Singapore as part of its expansion strategy. In March 2023, the company launched PayNow and FAST bank transfers to provide a safe and seamless customer experience. It also integrated Singapore's digital identity service, SingPass, for swift customer onboarding and has partnered with local blockchain companies such as Infura, Nansen.ai, and Blockdaemon to expand its offerings.
Singapore is a significant market for Coinbase due to its thriving crypto scene. A recent survey revealed that 32% of Singaporeans have owned or currently own cryptocurrencies, with 25% considering cryptocurrency as the future of finance. This makes Singapore an attractive opportunity for firms looking to expand their customer base and revenue.
Other global crypto firms have also received operational licenses in Singapore. Blockchain.com, a wallet and crypto data provider, announced on August 7 that it received an MPI license from MAS on August 1. Similarly, Circle, a USDC stablecoin issuer, announced receiving an MPI license from MAS on June 7, 2023.
In other news today, GSR, a global cryptocurrency trading firm and liquidity provider, received in-principle approval from MAS for an MPI license. This will allow GSR to further establish its presence in the Singapore market and use it as a base for expanding investments in the region, as well as promoting the adoption of web3 technology. The announcement follows the recent granting of a full MPI license to Coinbase by MAS.
GSR Group CEO Jakob Palmstierna conveyed gratitude to MAS for their constructive oversight, which has played a pivotal role in shaping a thriving digital asset ecosystem. GSR Group COO Xin Song added that the company is delighted to be recognized as one of the pioneering firms to receive in-principle approval from a globally respected regulator like MAS.
Singapore's attractiveness to crypto and blockchain developers has been further fueled by perceived geopolitical risks in Hong Kong, where increasing influence from Beijing is a growing concern. Despite this, some countries have been more cautious towards crypto exchanges. For instance, Gemini, a prominent cryptocurrency exchange based in New York, has announced its intention to temporarily halt its cryptocurrency services in the Netherlands due to stringent regulatory requirements set by the Dutch financial authority.
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