Coinbase, a leading global cryptocurrency exchange, has recently obtained a Major Payment Institution (MPI) license from Singapore’s Monetary Authority (MAS). This pivotal development allows Coinbase to expand its digital asset payment services to both retail and institutional customers in Singapore. The acquisition of this license represents Coinbase’s commitment to the thriving crypto community and the growing web3 ecosystem. Singapore’s friendly and rapidly expanding crypto market has proven to be an attractive opportunity for firms like Coinbase to broaden their revenue streams and customer base.

Validating Coinbase’s Operations:
The MPI license obtained by Coinbase validates its operations in Singapore and underlines its compliance with Singapore’s Payment Services Act 2019 (PS Act). Unlike other payment service providers, MPI-licensed firms, including Coinbase, are not subject to transaction limits imposed by the authorities. This exemption signifies the regulator’s trust in Coinbase’s capabilities and paves the way for more seamless financial transactions involving cryptocurrencies in Singapore.

Coinbase’s Commitment to Singapore:
Coinbase has been proactive in catering to the specific needs of the Singapore market, evident in its launch of new products and services tailored for local users. In March 2023, the platform introduced PayNow and FAST bank transfers, aiming to provide customers with safe, convenient, and efficient payment experiences. Additionally, Coinbase integrated Singapore’s digital identity service, SingPass, for seamless and swift onboarding of new customers. To ensure a comprehensive and diverse offering, Coinbase has forged partnerships with various Singapore-based blockchain companies, including Infura, Nansen.ai, and Blockdaemon.

Singapore’s Crypto Market Potential:
Singapore has become a hotbed for the crypto industry, with a vibrant and rapidly growing crypto market. A recent survey reveals that 32% of Singaporeans have owned or currently own cryptocurrencies, with 25% perceiving crypto as the future of finance. This thriving market provides an attractive opportunity for Coinbase and other global crypto firms to expand their revenue and customer base. The presence of over 700 web3 firms in Singapore further solidifies its standing as a crucial market for the crypto economy’s advancement.

Competition and Operational Licenses:
Coinbase is not the only global crypto firm finding success in Singapore. Blockchain.com, a prominent wallet and crypto data provider, announced its MPI license acquisition on August 1, following in the footsteps of Circle, the issuer of the USDC stablecoin. Circle received its MPI license in June 2023, shortly after Crypto.com’s announcement of obtaining the license in early June. Such developments highlight Singapore’s highly competitive environment for the crypto industry and blockchain-based startups.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.