Singapore greenlights Coinbase to launch crypto services

abdelaziz Fathi

Nasdaq-listed crypto exchange operator Coinbase has been handed in-principle approval from Singapore regulators to operate fully regulated cryptocurrency services in the country.

The IPA licence allows the firm to provide digital payment token services under the Major Payment Institution (MPI) licence.  Less than 20 MPI-licensed firms are approved by the city-state’s de facto central bank, the Monetary Authority of Singapore (MAS), to offer crypto services.

Using the specific terms of the Singaporean framework, Coinbase has now been approved, in principle, for receipt of a Major Payment Institution Licence that allows it to provide Digital Payment Token Services.

Hassan Ahmed, CEO of Coinbase Singapore and the exchanges’ regional director for Southeast Asia, told Cointelegraph that  they “collaborate with industry associations to promote dialogue with policymakers, and ensure balanced regulations, and a pragmatic approach to regulatory framework for digital assets. On the employment side, crypto as an industry is exciting but often confusing, so we are working with career exploration non-profits like advisory.sg to provide guidance to their members.”

Ahmed further elaborated on Coinbase plans to expand in Southeast Asia as it is a “crypto-forward region with a lot of demand for holding and using crypto in markets such as the Philippines and Indonesia, as well as a hotbed of innovation for trends like Web3 gaming such as Vietnam”.

Alongside its US authorisation, Coinbase also holds licenses from Italy, the Netherlands, Ireland and Germany, as well as the UK Financial Conduct Authority to operate a multilateral trading facility (MTF). Additional registrations or license applications are in progress in several major markets, in compliance with local regulations.

Coinbase laid off about 18% of its workforce — or about 1,100 people — earlier this year. CEO and cofounder Brian Armstrong blamed a looming “crypto winter” alongside impending recession as the reasons for making these drastic cuts.

The move comes even as regulators in Singapore said they may implement consumer protections for crypto investors, which could include suitability tests, curbs on leverage trading and credit facilities. The regulator may restrict retail investment in the crypto sector through new consumer protection safeguards.

The city-state’s central bank chief further noted that retail investors have been “irrationally oblivious” about the risks associated with crypto trading. He reiterated the MAS’s view that cryptocurrencies are “not suitable investments for the retail public,” due to their exceptional price volatility.

Singaporean regulators have received 180 licence applications from digital asset providers as the country was seen to be crypto-friendly and has been attracting global firms to set up offices here. This included top crypto exchanges such as Binance and Kraken. Although the MAS has recently given its in-principle approval to several applicants, but over 30 applications were withdrawn after engagement with the agency and two have been rejected.

Singapore’s regulatory regime for exchanges requires them to provide adequate consumer protections and comply with Anti-Money Laundering measures.

Read this next

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

<