Coinbase obtains license to expand crypto payment services in Singapore.

Coinbase obtains license to expand crypto payment services in Singapore.

Coinbase obtains MPI license in Singapore: A step towards blockchain innovation

Source: AdobeStock / gguy

Cryptocurrency exchange Coinbase has recently secured a full major payment institution (MPI) license under Singapore’s Payment Services Act. This achievement comes nearly a year after Coinbase received preliminary approval from the Monetary Authority of Singapore (MAS). With this license, Coinbase joins a growing list of firms authorized to provide digital payment token services within the Republic.

A gateway to crypto payment services

The granted MPI license allows Coinbase to offer a wide range of crypto payment services to both individuals and institutions in Singapore. Currently, the exchange provides trading and staking services to its users. Staking involves temporarily locking up users’ digital tokens to validate blockchain transactions while earning rewards in the form of additional tokens.

Prioritizing Singapore’s prosperous market

According to Mr. Hassan Ahmed, the country director of Coinbase Singapore, the local team comprises nearly 100 professionals, including product managers, engineers, business development experts, and legal and compliance personnel. Coinbase recognizes Singapore as a vital market for their operations due to the nation’s progressive economic strategies and regulatory approach that align with the company’s global mission and objectives.

A Coinbase survey conducted in May revealed that 25% of Singaporeans perceive cryptocurrency as the future of finance, while 32% have owned or currently own some form of cryptocurrency assets. In response to the local demand, Coinbase has introduced convenient funding options, such as PayNow and FAST bank transfers, along with the SingPass onboarding system earlier this year, making it easier for Singaporeans to access and utilize cryptocurrencies.

Investing in blockchain innovation

Singapore serves as Coinbase’s Asia Pacific technology hub, and the company has actively invested in more than 15 Web3 startups in the region through its investment arm, Coinbase Ventures. By supporting emerging blockchain projects and startups, Coinbase reinforces its commitment to advancing the blockchain industry and fostering innovation.

Overcoming challenges and achieving growth

Despite regulatory challenges, including a lawsuit filed by the United States Securities and Exchange Commission (SEC) alleging illegal operations, Coinbase has managed to perform well. In August, the company reported improved financial results, with its second-quarter net loss narrowing to US$97 million from a record US$1.1 billion in the previous year. Although the Q2 revenue declined by 12% compared to the previous quarter, it still exceeded estimates, totaling US$707.9 million.

Obtaining the MPI license in Singapore is a significant milestone for Coinbase, enabling them to expand their presence in the growing market for crypto payment services. As Coinbase continues to invest in blockchain startups and overcome regulatory challenges, the company reinforces its position as a key player in the global blockchain industry. By prioritizing Singapore and aligning with its forward-thinking approach, Coinbase sets itself up for further success in the region and beyond.