Coinbase is now legally authorized to expand its Digital Payment Token services to individuals and financial institutions in Singapore.
According to the company’s Oct. 2 blog post, Coinbase Singapore obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS).
Coinbase received its MAS license last October, which has allowed it to continue offering regulated Digital Payment Token products and services in the country.
Singapore, a vital market for Coinbase, is home to over 700 Web3 companies and has continued to serve as a tech hub for the U.S. crypto exchange. Over the last three years, Coinbase Ventures, the exchange’s venture arm, has invested in over 15 Singapore-based Web3 startups. The country continues to serve as the hub for Coinbase’s APAC Institutional business.
What Does the MPI License Afford?
Earlier this year, Coinbase rolled out PayNow and FAST bank transfers and integrated the country’s digital identity platform, SingPass, for streamlined user onboarding, which was also coupled with “no-fee” USDC purchases with the Singapore Dollar (SGD) to make it easier for Singapore customers to get started.
Monthly Transaction Cap Exemption
With an MPI license, licensed firms, such as Coinbase, are exempt from the transaction constraints of 3 million Singapore dollars (approximately $2.2 million USD) for any single payment service. Additionally, they are not restricted to the 6 million Singapore dollars ($4.4 million USD) monthly transaction cap that applies to combined payment services, with the exception of “e-money account issuance” and money-changing services.
In Coinbase’s recent international expansion update, they surveyed 25% of Singaporeans about crypto serving as the future of finance, which revealed that 32% were either current or past owners of crypto.
This move by Coinbase aligns with a broader trend, as several global crypto giants, including Blockchain.com, USD Coin issuer Circle, and Crypto.com, have also recently secured Singapore’s coveted MPI license.
The crypto exchange’s ongoing partnerships with prominent Singaporean blockchain firms like Nansen.ai, Blockdaemon, and Infura also continue to underscore Coinbase’s local integration efforts, which work well alongside the Base blockchain and Wallet-as-a-Service.
Editor’s note: This article was written by an nft now staff member in collaboration with OpenAI’s GPT-4.