The news recently buzzing within the cryptoverse is the full major payment institution (MPI) license secured by crypto exchange Coinbase under Singapore’s Payment Services Act. This development comes on the heels of a preliminary approval received from the Monetary Authority of Singapore (MAS) a year earlier. Interestingly, Coinbase is now included on a growing catalogue of firms in the Republic granted the right to offer digital payment token services.
The ramifications of this development allow Coinbase to further diversify the array of crypto payment services they offer to both individuals and corporations in Singapore. Currently, staking and trading services are available to its user base. As a refresher, staking involves temporarily stowing away users’ digital tokens to endorse blockchain transactions, a process that accrues the users additional rewards in forms of tokens.
Coinbase‘s new permit forces the spotlight on Singapore. Mr. Hassan Ahmed, who heads Coinbase Singapore, reveals that their local team hosts nearly 100 specialists in fields as diverse as product management and legal compliance. It is worth highlighting that Coinbase identified Singapore as a key market since their first foray into the Lion City, aligning well with their global aspirations due to Singapore’s avant-garde economic approach and regulations.
A study by Coinbase in May elucidated that one in four Singaporeans view cryptocurrency as the financial future; in addition, nearly one-third currently possess or have previously held some form of cryptocurrency assets. In response to this burgeoning local interest, Coinbase introduced an array of convenient funding mechanisms such as PayNow and FAST bank transfers, and even kickstarted the SingPass onboarding system.
Singapore serves as Coinbase‘s technology shelter in the Asia Pacific, and the firm has been actively investing in various Web3 startups in the region via its investment branch, Coinbase Ventures. Even in the face of regulatory hurdles and lawsuits such as the one filed by the United States Securities and Exchange Commission (SEC) accusing Coinbase of illegal activities, the crypto firm has consistently managed its operations well.
The overall narrative seems encouraging; however, it is wise to remain mindful of the fact that with every new established foothold, regulatory clarity and a well-constructed risk management framework must accompany to ensure the secure and ethical progression of crypto entities. After all, the blockchain technology journey is still in its nascent stages, and the road ahead is fraught with unpredictability.
Source: Cryptonews
