Updated
Oct 02, 2023, 11:18 PM
Published
Oct 02, 2023, 12:00 PM
SINGAPORE – The largest cryptocurrency exchange in the United States, Coinbase, has received a full Singapore licence to offer more digital asset payment services here.
The granting of the full major payment institution licence under the Payment Services Act comes about a year after the firm received in-principle approval from the Monetary Authority of Singapore (MAS). It joins more than a dozen firms that are licensed to offer digital payment token (DPT) services in the Republic.
In a statement on Monday, the firm said the full licence allows it to offer enhanced services to both individuals and institutions.
Mr Hassan Ahmed, the country director of Coinbase Singapore, told The Straits Times: “Where we see the (full licence) also come into play is in helping us to accelerate relationships with stakeholders, particularly those that are regulated, such as banks.”
He added that the licence is essential in helping the exchange further its pursuit of institutional business with regular financial institutions.
Currently, Coinbase provides trading and staking services here. Staking is the process in which users’ digital tokens are locked up for a certain period to validate transactions on the blockchain, earning them more tokens as a reward.
The exchange employs about 100 people here, including product managers, engineers and staff in the business development, compliance and legal departments.
Asked if there are plans to grow the team, Mr Ahmed said the firm will “expand in a responsible and sustainable manner” when opportunities arise and business growth accelerates.
Coinbase expanded into Singapore in 2015, before Singapore put in place rules for DPT service providers.
The firm applied for a licence from MAS before July 2020.
The in-principle approval granted in October 2022 allowed the exchange to offer regulated DPT products and services.
In the statement on Monday, Mr Ahmed said Singapore’s progressive stance towards crypto and its robust Web3 ecosystem with more than 700 Web3 companies make it a natural fit for the company.
He added that the firm’s survey in May indicated that 25 per cent of surveyed Singaporeans view crypto as the future of finance, and 32 per cent have or have had some form of crypto asset ownership.
The exchange said it introduced earlier in 2023 funding options – including PayNow and banks’ Fast And Secure Transfers service – alongside the Singpass onboarding system, in response to local demand.
Its Asia-Pacific technology hub is located in Singapore, and it has invested in more than 15 Web3 start-ups based here through its investment arm Coinbase Ventures.
In August, Coinbase announced in filings that its second-quarter loss narrowed and its revenue exceeded estimates.
Its net loss in the second quarter – the sixth straight quarterly loss – was down to US$97 million (S$132.8 million) from a record US$1.1 billion a year earlier.
Revenue in the second quarter declined 12 per cent to US$707.9 million, beating the estimate of US$631.2 million.
Even so, its shares have more than doubled in 2023.
In June, the US Securities and Exchange Commission (SEC) sued Coinbase, accusing it of operating illegally because it failed to first register with the regulator.
The lawsuit was the SEC’s second in two days against a major crypto exchange, and it came after the regulator sued Binance, the world’s largest cryptocurrency exchange, and founder Zhao Changpeng.
Coinbase has applied for the court to dismiss the case.
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