Coinbase secures major payment institution license in Singapore – Cryptopolitan

In a significant move for the cryptocurrency industry, Coinbase, a leading crypto exchange operator, has been granted a Major Payment Institution license by the Monetary Authority of Singapore (MAS). This development comes amidst Coinbase’s ongoing legal battles in its home market, the United States.

A milestone for coinbase in Asia

Coinbase’s acquisition of this license in Singapore is a testament to its commitment to expanding its global footprint. The MAS had previously given in-principal approval to the company late last year, and this recent announcement solidifies the exchange’s position in the Asian market.

Hassan Ahmed, the country director of Coinbase Singapore, expressed his views on this achievement in an interview. “This license enshrines our commitment to the market and marks the end of our licensing journey,” he said. Drawing a comparison between the regulatory landscapes of Singapore and the U.S., Ahmed remarked, “Our experience in Singapore in some ways contrasts what’s going on in the U.S. By providing this level of regulatory clarity and by providing clear rules that the industry has to play by, that’s really important for us as we’re thinking about our international strategy.”

Ahmed also highlighted the collaborative efforts between Coinbase and MAS, noting that the exchange has provided “a lot of policy input” to the regulatory body.

Singapore’s evolving stance on cryptocurrency

Singapore’s decision to grant Coinbase this license is indicative of its progressive approach to the crypto industry. This move allows Coinbase’s Singapore entity to expand its Digital Payment Token services to a broader spectrum of customers, both retail and institutional. Furthermore, it strengthens the company’s relationship with local institutions, with Standard Chartered being its primary banking partner in the region.

In a bid to cater to the local market, Coinbase has introduced user-friendly account funding options such as PayNow and FAST bank transfers. Additionally, the company is offering fee-free purchases of USDC, a popular stablecoin, to meet the demands of its Singaporean clientele.

However, Singapore’s crypto-friendly reputation has faced challenges in recent times. Several crypto companies with ties to Singapore, including Three Arrows Capital, Vauld, and Hodlnaut, have faced crises. Notably, Su Zhu, the co-founder of Three Arrows, was arrested in Singapore after resisting cooperation with the liquidators of a failed hedge fund.

Despite these setbacks, MAS continues to show support for the crypto industry. Coinbase now joins the ranks of other crypto operators in the region, such as Crypto.com and Blockchain.com, which have also been granted MPI licenses.

Coinbase’s legal struggles in the U.S.

While Coinbase celebrates its achievements in Singapore, it faces challenges in the U.S., its primary market. The U.S. Securities and Exchange Commission (SEC) initiated legal action against the company in June, accusing it of functioning as an unregistered broker and exchange. This alleged violation of federal securities laws has put Coinbase in a contentious position with U.S. regulators.

This contrast between Coinbase’s experiences in Singapore and the U.S. underscores the varying regulatory climates for cryptocurrencies across different countries. As the industry continues to evolve, the actions of regulatory bodies will play a crucial role in shaping the future of crypto exchanges and their global operations.

Conclusion  

The granting of a Major Payment Institution license to Coinbase by the Monetary Authority of Singapore is a significant milestone, reflecting Singapore’s progressive stance towards the burgeoning cryptocurrency industry. While this achievement underscores the city-state’s commitment to fostering innovation and growth in the crypto sector, it also highlights the contrasting regulatory landscapes across different regions.