Coinbase, one of the leading cryptocurrency exchanges, has recently obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This license will enable Coinbase to significantly expand its payment services within the country. The approval from the regulator comes almost a year after Coinbase received an in-principle approval. The MPI license will grant Coinbase the authority to extend its digital token services to both individuals and institutions in Singapore.
Obtaining the MPI license from MAS offers a remarkable advantage to Coinbase. With this license, the cryptocurrency exchange can bypass certain financial constraints in Singapore. For instance, Coinbase will not be restricted by the S$3 million monthly transaction limit or the S$5 million daily outstanding money. These thresholds would have otherwise limited the scale of Coinbase’s operations in the country.
Coinbase considers Singapore a priority market for its operations due to the country’s progressive economic strategies and approach to regulation. The exchange believes that Singapore’s values and objectives align well with its own global mission. Moreover, Coinbase has expressed its commitment to supporting the local crypto and web3 community in Singapore through strategic investments and partnerships. Its venture arm has already made over 15 investments in web3-related companies within the region.
Market Impact and International Expansion
Following the announcement of Coinbase’s MPI license, the value of its COIN stocks experienced a notable increase of over 5% in pre-market trading. This demonstrates how such regulatory approvals can positively impact the market perception of a company. Moreover, Coinbase’s venture into Singapore is part of a larger international expansion strategy. The company recognizes the uncertain regulatory landscape in the United States and acknowledges that governments worldwide are implementing clearer regulations for the cryptocurrency industry. As a result, Coinbase has been actively seeking partnerships and working closely with regulators in key countries to expand its global reach.
Regulatory Approvals and Expansion Plans
Coinbase’s inclusion in the ranks of Singpore-licensed entities, such as Blockchain.com, Circle, and Crypto.com, signifies its growing presence in the country. This new license in Singapore is just one of the many regulatory approvals Coinbase has secured in recent times. The exchange has obtained regulatory clearance in various European countries, including the Netherlands, Spain, Ireland, and Italy. These approvals, along with partnerships with local regulators, have paved the way for Coinbase’s international growth and the establishment of an International platform. The platform has received regulatory approval from the Bermuda Monetary Authority (BMA) to offer both institutional and retail traders access to perpetual futures products.
Coinbase’s acquisition of the MPI license from MAS marks an important milestone for the company’s expansion into Singapore. With this license, Coinbase can overcome financial thresholds and offer its digital token services to a wider audience. The move also reflects Coinbase’s larger international growth strategy, as the company actively seeks partnerships and regulatory approvals in key markets around the world. As Coinbase continues to solidify its presence in various countries, it is positioning itself as a global leader in the cryptocurrency industry.
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