The biggest cryptocurrency exchange in the United States, Coinbase has acquired authorization from Singapore’s central bank to conduct payment services.
Firms that have received the central bank’s in-principle permission for providing digital payment token services to consumers and institutions are subject to regulation under the Payment Services Act.
Announcing the “important milestone,” Coinbase stated in a statement that the company has roughly 100 workers in Singapore, with product engineers making up the greatest majority of recruitment.
In 2020, over 180 crypto businesses applied to the Monetary Authority of Singapore for a crypto payments licence under a new framework. Singapore has issued seventeen in-principle approvals and licences after an extensive, continuous process of due diligence.
In recent years, Singapore’s friendly attitude has helped the financial centre attract digital asset services-related companies from China, India, and others, establishing it as a significant hub in Asia.
A number of crypto-related incidents have also emerged in the city-state. In June, Singapore’s Three Arrows Capital, a cryptocurrency hedge fund, started liquidating as it became clear that it would be unable to satisfy its hundreds of millions of dollars in liabilities.
In May, the fall of the cryptocurrencies Luna and TerraUSD harmed the hedge fund. Both coins were created by Terraform Labs, a Singapore-based company. Do Kwon, the creator of Terraform Lab is presently wanted by South Korean authorities.
However, the head of the MAS has distanced Singapore from these businesses, stating in July that Three Arrows and Terraform Labs are “so-called Singapore-based” organizations that have “nothing to do” with the city-crypto state’s rules.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.