Singapore, known as the Lion City, continues to roar with enthusiasm for cryptocurrency, and Coinbase is seizing the opportunity. In a significant development, the renowned crypto exchange has clinched a full major payment institution (MPI) license under Singapore's Payment Services Act, marking a milestone in its journey.
This achievement comes on the heels of Coinbase's preliminary approval from the Monetary Authority of Singapore (MAS) a year ago, underscoring the exchange's commitment to the region. With this MPI license, Coinbase joins an exclusive league of companies authorized to provide digital payment token services within Singapore's boundaries.
The granted MPI license is a game-changer for Coinbase, enabling the platform to offer a diverse range of crypto payment services to both individuals and institutions in Singapore. While Coinbase already provides trading and staking services to its users, this license expands its repertoire, allowing it to cater to the growing appetite for cryptocurrencies in the Lion City.
Mr. Hassan Ahmed, Coinbase Singapore's Country Director, revealed that the local team comprises nearly 100 professionals spanning various domains, including product management, engineering, business development, and legal and compliance. Singapore has been identified as a pivotal market by Coinbase, thanks to the nation's forward-thinking economic strategies and regulatory approach that align seamlessly with the company's global vision.
A recent Coinbase survey in May unveiled that 25% of Singaporeans view cryptocurrency as the future of finance, with 32% having either owned or currently owning some form of cryptocurrency assets. Responding to this burgeoning demand, Coinbase introduced user-friendly funding options, such as PayNow and FAST bank transfers, along with the SingPass onboarding system earlier this year.
Singapore serves as Coinbase's technology hub in the Asia Pacific region, and the company has demonstrated its commitment by actively investing in over 15 Web3 startups in the area through Coinbase Ventures. Despite regulatory hurdles, including an SEC lawsuit alleging illegal operations, Coinbase has maintained its resilience.
In August, Coinbase reported improved financial results, with its second-quarter net loss narrowing to US$97 million from a record US$1.1 billion in the previous year. Notably, the company's Q2 revenue exceeded estimates, reaching US$707.9 million, despite a 12% decline compared to the previous quarter.