Cryptocurrency exchange operator Coinbase has received an important regulatory license in Singapore. According to an announcement made today, the Monetary Authority of Singapore issued a major payments institution license to the company after granting in-principle approval late last year.
The news comes as Coinbase is locked in a heated dispute with regulators in its home market, the United States. The SEC sued the company in June, accusing it of violating federal securities laws by operating as an unregistered broker-dealer and exchange.
Hassan Ahmed, Coinbase's Singapore director, said in an interview: "This license reflects our commitment to the market and marks the end of our journey to seek a license."
"Our experience in Singapore is in some ways contrasted with what's going on in the U.S. By providing this regulatory clarity, by providing clear rules that industry has to follow, it's very important to us as we think about our international strategy."
He added that Coinbase has worked closely with the Monetary Authority of Singapore and provided "substantial policy input."
The license paves the way for Coinbase’s Singapore entity to offer wider digital payment token services to retail and institutional clients in the region, while also solidifying its ties with local institutions. Standard Chartered Bank is its local banking partner.
The company said it has tailored its product to meet local needs by launching simple account financing options, including PayNow and FAST bank transfers, as well as fee-free purchases of the stablecoin USDC.
As a business hub, Singapore is considered to be relatively friendly to cryptocurrencies, but its attitude towards the cryptocurrency industry has been tested in the past year, with crises at several Singapore-linked crypto companies, including ThreeArrows Capital, Vauld and Hodlnaut. Three Arrows Capital co-founder Su Zhu was arrested in Singapore last week after he refused to cooperate with the liquidators of the collapsed hedge fund.
However, the Monetary Authority of Singapore still seems willing to be lenient to new license applicants. Coinbase joins a dozen other cryptocurrency operators in the region with full licenses. Wallet companies Crypto.com and Blockchain.com both received MPI licenses this summer.
"I think Singapore is a few laps ahead of some of the other cryptocurrency hubs. They've seen both good actors and bad actors, and now they're lifting those regulations," Ahmed said.