Coinbase, the largest crypto exchange in the United States, said it has received approval from Singapore’s central bank to offer payment services in the city-state.
The in-principle approval, which the central bank started issuing to crypto companies last year, means that individuals and institutions can use digital token services for payments, and the companies are regulated by the central bank under its Payment Services Act.
Coinbase called it a “major milestone,” Coinbase said in a statement that it has built its presence in Singapore and currently has nearly 100 employees in the Southeast Asian state, with product engineers making up the bulk of its hires.
“We see Singapore as a strategic market and a global hub for Web3 innovation,” said Hassan Ahmed, Coinbase Regional Director for Southeast Asia.
Some 180 crypto companies have applied for a crypto payment license from the Monetary Authority of Singapore under a new regime in 2020. Singapore has issued 17 in-principle approvals and licenses following an extensive due diligence process that is still ongoing.
In addition to Coinbase, Crypto.com and DBS Vickers – the brokerage of Singapore’s largest bank DBS – are among those to receive licenses.
Singapore’s welcoming approach has helped the financial center attract digital asset services companies from China, India and elsewhere in recent years, making it a major hub in Asia.
However, there have also been quite a few cases of crypto fallouts in the city-state. Singapore-based crypto hedge fund Three Arrows Capital began liquidation in June after failing to meet hundreds of millions of dollars in obligations.
The hedge fund had been dealt a blow by the collapse of cryptocurrencies Luna and TerraUSD in May. Both coins were developed by Terraform Labs, which was founded in Singapore. Terraform Lab founder Do Kwon is currently wanted by South Korean police.
However, the head of the MAS has tried to distance Singapore from these companies, saying in July that companies such as Three Arrows and Terraform Labs were “so-called Singapore-based” companies that “had little to do” with the city-state’s cryptocurrency. regulations.
Singapore plans to roll out new regulations that will make it more difficult for retail investors to trade cryptocurrencies.