Crypto giant Coinbase Receives a License in Singapore

Crypto giant Coinbase Receives a License in Singapore

Coinbase said it has received approval from the Central Bank of Singapore to provide payment services in the city-state.

Singapore: Coinbase, the largest cryptocurrency exchange in the United States, said it has received approval from the Central Bank of Singapore to provide payment services in the debtor country.

The approval in principle, which the central bank began granting to crypto companies last year, means that individuals and organizations can use digital payment token services and that businesses are regulated by the central bank under the Payment Services Act.

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Calling it a “significant milestone,” Coinbase said in a statement that it is increasing its presence in Singapore and currently has nearly 100 employees in the Southeast Asian country, with product engineers making up the bulk of the hiring.

“We view Singapore as a strategic market and a global hub for Web3 innovation,” said Hassan Ahmed, Coinbase’s Regional Director for Southeast Asia.

About 180 crypto companies have applied for a crypto payments license from the Monetary Authority of Singapore in 2020 under a new system. Singapore has granted 17 approvals and licenses in principle after a detailed due diligence process that is still ongoing.

In addition to Coinbase, Crypto.com, and DBS Vickers, the brokerage operated by Singapore’s largest bank, DBS, is among the companies that have received licenses.

Singapore’s welcoming approach has helped the financial center attract business related to digital asset services from China, India, and elsewhere in recent years, making it a major hub in Asia.

However, there have also been a few instances of cryptocurrency repercussions in the city-state. Singapore-based Crypto Crypto hedge fund Three Arrows Capital began liquidating in June after failing to meet hundreds of millions of dollars in commitments.

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The hedge fund was hit by the collapse of the Luna and TerraUSD cryptocurrency in May. Both pieces were developed by Terraform Labs, which is incorporated in Singapore. Terraform Lab founder, Do Kwon is currently wanted by the South Korean police.

However, the MAS chief tried to distance Singapore from these companies, saying in July that companies like Three Arrows and Terraform Labs were “Singapore-based companies” that had “nothing to do” with the city’s crypto-state. systems

Singapore plans to introduce new regulations that will make it difficult for retail investors to trade cryptocurrencies.

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