The exchange gained an in-principal license last year and it is stressing on offering locally curated services in Singapore.
San Francisco-based cryptocurrency exchange Coinbase (COIN) has strengthened its presence in Southeast Asia by obtaining a Major Payment Institution (MPI) license from the Monetary Authority of Singapore.
Announced today, Monday, the crypto exchange obtained full license after a year of primary approval by the city-state regulator. Coinbase previously considered entering the country by acquiring a now-bankrupt crypto exchange, Zipmex, but pulled out of the deal in mid-2022.
Singapore is home to over 700 Web3 companies, making it a key market for the growth of the crypto and Web3 economies. Coinbase has been actively developing and launching products tailored to the Singapore market and plans to continue fostering strong relationships with industry associations and make region-specific investments.
“We have identified Singapore as a vital market for Coinbase,” Nana Murugesan, vice president of international and business development at Coinbase, and Hassan Ahmed, Singapore country manager at Coinbase, wrote in a joint blog post.
“The nation’s progressive economic strategies and regulatory approach synchronize well with our global mission and objectives,” Murugesan added.
High retail demand for cryptocurrencies in Singapore also pushed many businesses to enter the small country, which is also referred to as a gateway to the vast markets of Southeast Asia. Coinbase also highlighted a survey that found that 25 percent of Singaporeans see cryptocurrencies as the future of finance, and 32% own or hold cryptocurrencies.
“In response to the growing demands of the region and the unique dynamics of the market, we have actively developed and launched products designed specifically for Singapore,” added two Coinbase executives.
In fact, the American exchange added local financing options to its services in Singapore and integrated SingPass to streamline onboarding processes. Additionally, the exchange offers fee-free USDC purchases with SGD.
Coinbase Expansion Goals
While Coinbase strengthened its presence in Southeast Asia, its future in India is in danger. The exchange canceled new registrations on its crypto exchange in the country. The exchange also terminated the accounts of Indian users who did not comply with its guidelines.
However, Coinbase is expanding to other jurisdictions by obtaining local licenses. It recently registered as a virtual asset service provider (VASP) in Spain and also has similar approvals in Italy, Ireland and the Netherlands.
Additionally, the exchange obtained regulatory approval from Bermuda’s financial regulator to allow perpetual futures trading for retail clients outside the United States. Meanwhile, the exchange is embroiled in a legal battle with the US securities regulator.
Coinbase Continues to Invest in Web3
Singapore serves as Coinbase’s Asia Pacific technology hub, and the company has actively invested in more than 15 Web3 startups in the region through its investment arm, Coinbase Ventures.
In August, Coinbase reported an improvement in its financial results, with its second-quarter net loss narrowing to $97 million from a record $1.1 billion a year earlier. The company’s second-quarter revenue, which beat estimates, totaled $707.9 million, although it fell 12% from the previous quarter.
Despite regulatory challenges, including a lawsuit filed by the US Securities and Exchange Commission (SEC) for alleged illegal operations, Coinbase has managed to perform well.
By Leonardo Pérez
