- Coinbase allows Singaporean customers to move funds between their crypto accounts and local banks
- The crypto exchange partnered with Standard Chartered bank for customers to manage their digital assets without the need for Visa or Mastercard
- Singapore’s central bank recently pushed for new regulations regarding the volatility of the crypto market
As investors increasingly struggle to find ways to trust and invest with cryptocurrency exchanges, Coinbase is taking a huge step forward by allowing customers in Singapore to move funds between their accounts and local banks. This partnership with Standard Chartered bank makes it easy for customers to access digital assets without using Visa or Mastercard debit or credit cards.
Hassan Ahmed, country director for Coinbase in Singapore, has stated that this move is part of the company’s international expansion strategy, hoping to ramp up its presence in the city-state. It’s encouraging news amidst a backdrop of financial instability. However, there are still caveats, such as the proposed rules by MAS which would prevent trading businesses from offering incentives or financing to retail customers.
The recent news also follows the dramatic collapse of the crypto exchange FTX, fueling fragile confidence in cryptocurrencies. Silvergate Capital Corp recently announced its shutdown, making Coinbase’s move all the more critical.
Tighter Rules in Singapore
Meanwhile, the Monetary Authority of Singapore (MAS) has proposed new regulatory measures on cryptocurrency trading and stablecoins to protect Singaporean investors from the unpredictability of the market.
These regulations proposed include barring companies from lending out crypto assets owned by retail customers, enforcing segregation of customer assets versus their own, and not providing incentives or financing to draw in more customers. Credit card payments are also prohibited in these new rules.
The move comes as a response to rising volatility due to crypto exchanges such as FTX, which experienced a spectacular collapse, leaving many investors anxious about their investments. It also follows Silvergate Capital Corp’s closure after facing similar losses. These events are changing the landscape for Singaporean investors, aiming to shrink potential losses and reduce consumer harm from high-risk activities.
Regulations Continue in Other Governments
Recently, the Securities and Exchange Commission (SEC) moved to impose stricter regulations on cryptocurrency companies to protect investors better and reduce market risk. The announcement included closing loopholes used by firms to bypass securities registration requirements and more stringent reporting requirements for larger cryptocurrency businesses.
The European Union’s proposed anti-money laundering regulations have also made news recently. This includes mandatory compliance with financial crime prevention policies for all crypto exchanges and custodial wallet providers within the EU.
These moves come amidst heightened global scrutiny of digital currency use for money laundering and other illicit activities, which puts a greater focus on governments worldwide to ensure appropriate measures are in place to protect investors from potential harm and losses.
So far, first-world countries, including the US, UK, EU, Japan, South Korea, and Singapore, have been creating new regulatory rules since late 2022.