[NEWS] Coinbase Obtains Major Payment Institution License in Singapore

Cryptocurrency exchange Coinbase announced on the 1st that it has received a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS) to operate in Singapore.

The MPI license allows Coinbase to provide cryptocurrency services to retail and institutional investors in Singapore.

Singapore has attracted digital asset companies from China, India and other countries. Coinbase cited data that 32% of Singapore's population has previously owned cryptocurrency, making the country an important market for Coinbase.

Singapore's central bank and financial regulator, MAS, said on its website last month that it will only grant licenses to cryptocurrency companies if they have strong anti-money laundering measures in place, and most applicants will not be approved.

According to MAS, 14 companies have obtained cryptocurrency payment licenses, including the Singapore unit of British fintech company Revolut and London-based cryptocurrency company Blockchain.com.

MAS announced in August last year that it would take measures to strengthen regulations on cryptocurrency trading, and also said that it plans to strengthen regulations on cryptocurrency investors, such as leveraged trading limits, suitability tests, and credit limits.

Although Singapore was once skeptical of the cryptocurrency sector, it seems to have re-evaluated its position as the city-state's largest cryptocurrency hub in Asia.

Coinbase offers products tailored to Singapore customers, including incentives for users of USD Coin (USDC), a US dollar-pegged stablecoin developed in collaboration with Circle.

It does not charge fees when buying USD Coin with Singapore dollars (SGD). It also offers 200 trading pairs for USD Coin, expanding the options available for advanced trading. It also introduced a cryptocurrency staking service, allowing customers to earn rewards for holding USD Coin.

Reference:Announcement
Image: Shutterstock