Crypto giant Coinbase gets Singapore license

SINGAPORE, Oct 11 (Reuters) – 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 began issuing to crypto firms last year, means that individuals and institutions can use digital payment token services, and that the firms are regulated by the central bank under the Payment Services Act.

Calling it a “significant milestone,” Coinbase said in a statement that it had built up its presence in Singapore and currently had nearly 100 employees in the Southeast Asian state, with product engineers making up the largest portion of hires.

“We see Singapore as a strategic market and a global hub for Web3 innovation,” said Hassan Ahmed, Coinbase’s regional director for Southeast Asia.

Around 180 crypto companies applied for a crypto payment license to the Monetary Authority of Singapore in 2020 under a new regime. Singapore has awarded 17 in-principle approvals and licenses following an extensive due diligence process which is still ongoing.

Besides Coinbase, Crypto.com and DBS Vickers — the brokerage house run by Singapore’s biggest bank DBS ( DBSM.SI ) — are among those that have been granted licenses.

Singapore’s welcoming approach has helped the financial hub attract digital asset services-related firms from China, India and elsewhere in recent years, making it an important hub in Asia.

However, there have also been quite a few cases of crypto fallout in the city-state. Singapore-based crypto hedge fund Three Arrows Capital began winding down in June after it was unable to meet hundreds of millions of dollars in liabilities.

The hedge fund had taken a hit from the collapse of cryptocurrencies Luna and TerraUSD in May. Both coins were developed by Terraform Labs, which was incorporated in Singapore. Terraform Labs founder Do Kwon is currently wanted by the South Korean police.

However, the head of MAS has sought to distance Singapore from these firms, saying in July that companies such as Three Arrows and Terraform Labs were “so-called Singapore-based” firms that had “little to do” with the city-state’s crypto. regulations.

Singapore plans to roll out new rules that will make it more difficult for retail investors to trade cryptocurrencies.

Reporting by Xinghui Kok; Editing by Anshuman Daga and Ed Osmond

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