Amid global expansion moves, Coinbase announced on October 1 that it secured a new Major Payment Institution (MPI) license in Singapore. This license will enable it to expand its digital asset payment services to Singapore’s retail and institutional customers.
The MPI license comes one year after Coinbase obtained an in-principle approval from Singapore’s Monetary Authority (MAS).
MPI License Validates Coinbase Operations In Singapore
According to the MAS, payment service providers can apply for three types of licenses. This license enables them to provide payment services subject to the Payment Services Act 2019 (PS Act).
In addition, the regulator noted that MPI-Licensed payment services firms are not subject to the $2.2 million (S$3 million) transaction limit. The firms are also exempted from the S$6 million ($4.4 million) monthly transaction limit. This transaction limit exemption applies to payment services besides e-money account issuance and money-changing services.
Furthermore, Coinbase said in its announcement that its new MPI license not only validates its operation in Singapore but it also represents its commitment to the expanding web3 and crypto community.
Coinbase has been creating new products and services specifically developed for Singapore amid its rapid expansion moves. In March 2023, the crypto exchange launched PayNow and FAST bank transfers to provide a safe, seamless, and convenient customer experience.
Also, it added Singapore’s digital identity service, SingPass, for swift and seamless onboarding of new customers. In addition, Coinbase has been partnering with Singapore-based blockchain companies to expand its offerings. Some firms it partnered with include Infura, Nansen.ai, and Blockdaemon.
Singapore’s Friendly Market Is Significant For Crypto
In the announcement, Coinbase said through its initial operations, it identified Singapore as a vital market for its expansion goals. The announcement cited a recent survey that revealed that 32% of Singaporeans have owned or own cryptocurrencies. The survey also found that 25% of Singaporeans consider cryptocurrency as the future of finance.
This suggests Singapore is a thriving and bubbling crypto hub and Singapore’s rapidly growing crypto market offers firms an attractive opportunity to grow their revenue and customer base.
Coinbase stated in its announcement that “Singapore has naturally become a significant location” for the crypto industry. Moreover, it houses over 700 Wbe3 firms, making it a crucial market for the Web3 and crypto economy expansion.
As a result, Singapore has become a highly competitive environment for crypto industry and blockchain-based startups. Besides Coinbase, other global crypto firms have also received operational licenses in Singapore, while others might be pursuing theirs.
Blockchain.com, a wallet and crypto data provider, announced on August 7 that it received an MPI license from MAS on August 1. Also, Circle, a USDC stablecoin issuer, announced receiving an MPI license from MAS on June 7, 2023. Circle’s announcement came a few days after Crypto.com shared a notice on June 1 that it obtained the MPI license.