Coinbase has received in-principal approval from the Monetary Authority of Singapore (MAS), thus gaining the status of a Major Payments Institution under the local Payment Services Act.
Announced on Tuesday, the new approval will allow the California-headquartered cryptocurrency exchange to offer Digital Payment Token products and services in Singapore.
“We look forward to ongoing collaboration with the government on a pragmatic regulatory framework for digital assets, to empowering local and regional builders as they scale use cases, and to continue supporting efforts to consolidate the island state’s position as a global Web3 hub,” the official press release stated.
Coinbase already had a significant presence in Singapore. It already has 100 employees in Singapore and is considering the city-state as one of its tech hubs. Further, the exchange operates its APAC institutional business from the city-state.
“Today’s announcement underlines our commitment to Singapore as a regional hub that allows us to unlock new capabilities for Singapore-based institutional and corporate clients in the future,” the exchange added.
Coinbase is also focused on expansion into other global jurisdictions. Last month, the American crypto exchange received regulatory approval in the Netherlands that allows it to offer crypto products in the country. In addition, it received regulatory approval in Italy last July.
The Asian Gateway
MAS’ digital payment token license is considered to be one of the most stringent approvals for cryptocurrency companies. Coinbase has joined the flock of Cypto.com and DBS Vickers, along with 14 other companies, to obtain the license in Singapore.
However, Binance, which is the largest crypto exchange by trading volume, withdrew its application for a Singapore license and then pulled out from the jurisdiction altogether by shutting its local entity.
Meanwhile, Singapore’s MAS is considering bringing more restrictions for cryptocurrency trading, mostly by placing limits on retail participation and the use of leverages. The regulator has been alarmed by the recent collapse of several promising crypto companies that were based in Singapore.
