- Coinbase has obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS) to expand its digital payment token services in the country.
- Coinbase has been actively developing products for the Singapore market, including integrating with local blockchain firms and reporting a significant interest in crypto among Singaporeans.
Coinbase, a crypto exchange in the United States, is extending its operations to Singapore after receiving significant regulatory approval from the country’s central bank.
The company announced on October 1 that the Monetary Authority of Singapore (MAS) granted Coinbase a Major Payment Institution (MPI) license. The new license, which comes one year after Coinbase’s initial in-principle approval in Singapore, allows the business to expand its digital payment token services to individuals and institutions in the country.
As noted by the MAS, MPI-licensed enterprises can conduct payment services without being subject to transaction restrictions of 3 million Singapore dollars ($2.2 million) for any payment service.
The approved companies are also exempt from the 6 million Singapore dollars ($4.4 million) monthly transaction limit for two or more payment services other than e-money account issuing and money-changing services.
According to the release, the newly gained license is “not only a validation of Coinbase’s operations” but also symbolizes a responsibility to Singapore’s burgeoning crypto and Web3 community.
Coinbase has been actively developing products and services, particularly for Singapore, with the launch of PayNow and FAST bank transactions in March 2023. Coinbase has also incorporated SingPass, Singapore’s digital identity service, to make onboarding easier.
Furthermore, Coinbase has been working with significant local blockchain companies such as Nansen.ai, Blockdaemon, and Infura to expand its products, such as Base blockchain and Base blockchain.
“From our initial involvement in the Lion City, we’ve identified Singapore as a vital market for Coinbase,” the exchange stated, stressing that more than 30% of Singaporeans were found to be current or past crypto owners in its recent survey.
The announcement further stated, “Singapore has naturally become a significant location for this industry. Moreover, Singapore is home to over 700 Web3 companies, making it a pivotal market for the growth of the crypto and Web3 economy.”
Major crypto enterprises worldwide have recently started getting Singapore’s MPI license in more significant numbers. Blockchain.com, a distributor of cryptocurrency data and wallets, became the 12th company to get the license in August 2023.
Following Crypto.com’s approval, Circle, the USD Coin issuer, also received the MPI license in June 2023.
