- Coinbase Exchange approached Singapore’s regulatory body, the Monetary Authority of Singapore (MAS), and passed all criteria necessary for a Major PAymenst Institution(MPI) license.
- Coinbase Exchange planned on expanding its operations due to the US’s hostile crypto market.
- Over 30% of Singaporeans are current or past crypto owners.
As 2023 draws to an end, the crypto industry has experienced several key highs and lows. Since the FTX fiasco, the entire industry almost collapse were it not for the interventions of vital marketplaces and exchanges like Africa’s crypto market and Binance. Despite numerous efforts to revive the industry, its progress is slow, especially with recent crypto lawsuits. Many regulatory bodies targeted crypto exchanges that did not adhere to existing laws. These efforts are to prevent a similar altercation. Unfortunately, what started as a means to enforce the law soon became a power struggle.
Today, plenty of regions have implemented severed crypto laws preventing vital figureheads in the industry from entering their markets. Fortunately, few governments still believe in the crypto industry like Singapore. In recent news, Coinbase Exchange secured a crypto license to operate in Singapore’s crypto market.
With this recent milestone, Coinbase might gain the edge it requires to outpace its rival, Binance.
The need for a Crypto License in the industry
There are three major flaws within the crypto industry, namely, high volatility, Interoperability, and vague crypto laws. Unfortunately, amid the 2023 crypto winter, the latter has significantly hindered its growth. Due to the vague crypto laws, several regulatory bodies have taken advantage of the situation to control the industry. In light of this, several governments like South Africa have emphasized the need for more crypto licenses.
In a nutshell, a crypto license is a legal document granting businesses and exchanges permission to operate in the crypto market. Currently, to engage in any crypto market, a company must adhere to the criteria of regulatory bodies. A crypto license guarantees that a company will operate within the parameters dictated by the regulatory bodies.
Due to the 2022 crypto crash, several organizations have incorporated crypto licenses to prevent malicious activities. One of the main benefits of a crypto-based company obtaining one is to avoid any legal action. Unfortunately, the very decentralized nature of digital assets makes it a target for fraudulent activities.
Today, several millions of cryptocurrencies aid the activities of malicious groups. Its decentralized and anonymous nature provides the perfect conditions for illegal activities. Thus, many regulatory bodies issue crypto licenses to ensure any crypto company can be held accountable for its transactions.
Furthermore, a crypto license is a representation of trust. Trust and credibility are a must-have component for any crypto-based organization. After the web3 community discovered that FTX channeled most of its funds to other projects illegally, the entire ecosystem crashed. A crypto license is a stamp of approval that reassures crypto traders that the organization doesn’t vanish overnight. Thus, acquiring a crypto license is a significant milestone for any exchange.
Singapore approved CoinBase’s crypto license
Despite numerous crypto lawsuits and the tough crypto winter, Coinbase Exchange has managed to maintain its position as the second-largest exchange in the industry. Furthermore, the organization has made numerous steps to revive the industry and among its efforts is acquiring Singapore’s crypto license.According to the reports, Coinbase Exchange planned on expanding its operations due to the US’s hostile crypto market. As a result, Coinbase Exchange approached Singapore’s regulatory body, the Monetary Authority of Singapore (MAS), and passed all criteria necessary for a Major PAymenst Institution(MPI) license. With this new license, CoinBase can expand its digital payment token services to Singapore’s crypto market.
According to MAS, the MPI license authorizes firms to conduct payment services without subjection to transaction limits of 3 million Singapore dollars($2.2 Million). In addition, the crypto license also frees companies from the $4.4 million monthly limit of transactions for two or more payment services.
This new feat aligns with Coinbase’s recent attempts to enter Singapore’s crypto market. The exchange has developed several payment services designed specifically for Singapore’s crypto market. The exchange launched PayNow and FAST bank transfers in March 2023. Furthermore, Coinbase partnered with Singapore’s government to integrate the country’s digital identity services, SingPass, simplifying its onboarding services.
Coinbase Exchange has carved out its place in Singapore’s crypto market by collaborating with local blockchain firms, namely, Nansen.ai, Blockdaemon, and Infura. Together, they have expanded several crypto-based products and offered wallet-as-a-service. Coinbase Exchange has said, “From our initial involvement in the Lion City, we’ve identified Singapore as a vital market for Coinbase. Singapore has naturally become a significant location for this industry. Moreover, Singapore is home to over 700 Web3 companies, making it a pivotal market for growing the crypto and Web3 economy. “
Despite the 2023 crypto winter still heavily affecting the industry this milestone will open new doors of opportunity for the industry. Currently, over 30% of Singaporeans are current or past crypto owners. Through Coinbase, this figure can significantly increase. Their easy-to-use platforms, accompanied by a crypto license, will significantly propel the country’s digital transformation. Furthermore, it showcases that there are still a few governments who believe in a crypto-based future.