Coinbase, the cryptocurrency exchange operator, has been officially granted a significant regulatory license in Singapore. The Monetary Authority of Singapore has awarded the company a Major Payment Institution license, following an initial in-principle approval granted late last year, as announced today.
This development comes amid an ongoing contentious relationship between Coinbase and regulators in its home market, the United States. In June, the U.S. Securities and Exchange Commission filed a lawsuit against the company, alleging that it operated as an unregistered broker and exchange, thereby violating federal securities laws.
Hassan Ahmed, Coinbase Singapore’s country director, expressed, “This license underscores our commitment to the market and represents the culmination of our licensing journey. Our experience in Singapore, in some respects, differs from the situation in the U.S. Providing this level of regulatory clarity and establishing clear industry rules is crucial for us as we contemplate our international strategy.”
He further noted that Coinbase has maintained close collaboration with MAS and has contributed significantly in terms of policy input.
Singapore’s position on cryptocurrencies
The granted license opens up opportunities for Coinbase’s Singapore entity to expand its range of Digital Payment Token services, catering to both retail and institutional customers in the region. Simultaneously, it solidifies the company’s partnerships with regional institutions, with Standard Chartered serving as its local banking partner.
Coinbase has taken steps to adapt its offerings to local preferences by introducing straightforward account funding options, such as PayNow and FAST bank transfers, as well as enabling fee-free purchases of USDC, the stablecoin.
Singapore, known as a prominent business hub, is generally regarded as crypto-friendly, although it has faced challenges over the past year due to crises involving various crypto-related entities with Singaporean ties, including Three Arrows Capital, Vauld, and Hodlnaut. Recently, Three Arrows co-founder Su Zhu was apprehended in Singapore for non-cooperation with the failed hedge fund’s liquidators.
Nevertheless, the Monetary Authority of Singapore (MAS) continues to be receptive to license applicants. Coinbase now joins a group of around a dozen fully licensed crypto operators in the region. Companies like Crypto.com and Blockchain.com also secured Major Payment Institution licenses during the summer.
Ahmed commented, “I believe Singapore is ahead of some other crypto hubs in terms of regulatory development. They’ve witnessed both reputable and questionable actors pass through, and now they are strengthening these regulations.”