Cryptocurrency exchange Coinbase announced on Monday that it has obtained a full payment license from Singapore's central bank, allowing it to operate in the city-state.
The Major Payment Institution (MPI) license, issued by the Monetary Authority of Singapore (MAS), permits Coinbase to offer digital payment token services to individuals and institutions in Singapore, which has emerged as a key crypto hub in Asia.
Key Developments
- Preliminary Approval: Coinbase initially received in-principle approval from MAS in October 2022.
- Market Significance: Singapore is labeled a "priority market" by Coinbase, with survey data indicating that 32% of Singaporeans own or have owned cryptocurrencies.
- Regulatory Scrutiny: MAS emphasized that only crypto firms with robust anti-money laundering (AML) controls would be licensed, noting that "most applicants were unsuccessful."
Singapore’s Crypto Landscape
Singapore has attracted digital asset companies from China, India, and other regions. However, the 2022 collapse of firms like Three Arrows Capital and FTX dampened enthusiasm. State investor Temasek reduced compensation for its team responsible for recommending a $275M investment in FTX.
Recent Licensees
Fourteen companies, including:
- Revolut (Singapore branch)
- Blockchain.com (London-based)
have secured crypto payment licenses under MAS’s stringent framework.
Regulatory Tightening
In August 2022, MAS proposed regulations to restrict retail crypto trading, citing散户investors' "irrational disregard" for risks. A workshop titled "Supporting Digital Asset Innovation, Discouraging Crypto Speculation" highlighted concerns.
FAQs
Q: What services does Coinbase’s MPI license allow in Singapore?
A: It enables digital payment token services for individuals and institutions.
Q: How does MAS select licensees?
A: Firms must demonstrate strong AML controls; most applicants fail to meet standards.
Q: Why is Singapore a crypto hub?
A: Its pro-business regulations and high crypto adoption rate (32%) attract global firms.
👉 Explore Coinbase’s global services
Reuters contributed to this report.
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