- Summary:
- Singapore has emerged as a lobal crypto hub, and for Coinbase this is a reprieve of some sort, coming amidst legal troubles with the SEC.
Coinbase is now officially authorised to operate as a Major Payment Institution (MPI) in Singapore after obtaining a license from the Monetary Authority of Singapore (MAS). The company cited the Southeast Asian country’s progressive economic strategies and approach to regulation in as being in line with its global mission and goals, hence the decision to set up shop.
Singapore’s allure and Coinbase’s strategy
Because of its legislative clarity and its provision of clear norms that the industry needs to play by, Singapore has emerged as one of the main destinations for crypto-focused companies. With over 700 Web3 enterprises under its roof, Singapore is a key market for the expansion of the crypto and Web3 industries.
In contrast, it has been a tumultuous few months for Coinbase in the United States, its largest and most important market. In June the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the company, alleging that it was acting as an unregistered broker and exchange.
Coinbase has introduced solutions designed exclusively for the Singaporean market in response to the region’s increasing demand and unique market needs. To further serve its Singaporean customers, the exchange has integrated SingPass and expanded the availability of local funding options. In addition, Singapore dollars can now be used to buy USDCs without incurring any additional fees. The company is also catering to the needs of its Singaporean customers by offering purchases of USDC, a widely used stablecoin, free of charge.
The MAS had already granted the corporation preliminary approval towards the end of last year. After receiving In Principle Approval, Coinbase is now able to provide its Digital Payment Token services to a wider range of customers in Singapore, a move the company says demonstrates its continued dedication to the Singapore market.
Coinbase claims its dedication extends beyond its product offerings to Singapore’s Web3 ecosystem as a whole. Its Singapore office serves as a centre for training and recruitment, and it has established productive partnerships with other organisations in the tech sector, such as ACCESS, the Singapore Fintech Association, and the Singapore Blockchain Association.