Coinbase, one of the largest cryptocurrency exchanges in the world, has obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This license allows Coinbase to extend its payment services in Singapore and expand its digital token offerings to individuals and institutions in the country.
Coinbase’s MPI license is a significant milestone for the exchange. It comes almost a year after the MAS granted an in-principle approval for Coinbase’s operations in Singapore. With the MPI license, Coinbase can circumvent various financial thresholds in the country, such as a S$3 million monthly transaction limit and a S$5 million daily outstanding money limit. This increased flexibility allows the exchange to better serve its customers in Singapore.
Singapore holds great importance for Coinbase, as it is considered a priority market for the exchange. Coinbase recognizes the country’s progressive economic strategies and regulatory approach, which align with its global mission and objectives. The exchange plans to actively support Singapore’s local crypto and web3 community through investments and partnerships. Coinbase’s venture arm has already made more than 15 investments in web3-related companies in the region, demonstrating its commitment to fostering innovation and growth within the crypto ecosystem.
Following the news of Coinbase’s MPI license, the exchange’s COIN stocks experienced a significant rally, with a pre-market increase of over 5% to $79.26. This positive market response reflects investor confidence in Coinbase’s expanding presence and its ability to navigate regulatory challenges in various jurisdictions.
Coinbase’s licensing in Singapore is part of its broader international expansion strategy. The exchange acknowledges the uncertain regulatory landscape in the United States and the need to forge ahead in key international markets. Paul Grewal, Coinbase’s Chief Legal Officer, emphasized that governments worldwide are taking steps to introduce clearer regulations for the cryptocurrency industry, and the world is not waiting for the US. This proactive approach has led Coinbase to prioritize collaborations with regulators in various countries as it pursues its international growth objectives.
Coinbase’s efforts to work closely with regulators have resulted in securing regulatory approvals in multiple European countries, including the Netherlands, Spain, Ireland, and Italy. These approvals enable Coinbase to expand its services to a broader customer base across Europe, further strengthening its position as a leading cryptocurrency exchange. Additionally, Coinbase obtained regulatory approval from the Bermuda Monetary Authority (BMA) for its International platform, facilitating access to perpetual futures products for institutional and retail traders.
Coinbase’s acquisition of the Major Payment Institution license in Singapore marks a significant milestone in its global expansion plans. The license allows the exchange to extend its payment services and digital token offerings to individuals and institutions in Singapore, a priority market for Coinbase. The positive market response, with an increase in COIN stocks, reflects investor confidence in Coinbase’s ability to navigate regulatory challenges and capitalize on growth opportunities. By actively collaborating with regulators worldwide, Coinbase aims to establish itself as a trusted and compliant platform for cryptocurrency transactions globally.