Coinbase, the largest cryptocurrency exchange in the United States, has received approval from Singapore''s central bank to provide payment services in the city-state.
Individuals and institutions may use digital payment token services as part of the in-principle agreement, and the banks are under the Payment Services Act.
Coinbase described the process as a "significant breakthrough" in a statement that it has expanded its presence in Singapore, bringing up around 100 employees from the Southeast Asian region, with product engineers forming the most responsible workforce.
"We view Singapore as a strategic market and a global hub for Web3 innovation," said Hassan Ahmed, Coinbase''s regional director for Southeast Asia.
Under a new set, 180 crypto companies applied for a crypto payments license to the Monetary Authority of Singapore in 2020. Following an extensive due diligence process, Singapore has given out 17 in-principle approvals and licences.
Non-conductors include Coinbase, Crypto.com, and DBS Vickers, the Singapore-largest bank DBS.
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There have been a number of crypto failures occurring in the city-state, according to a Singapore-based crypto hedge firm Three Arrows Capital, who was purchased in June, but was refused to fulfill hundreds of millions of dollars in obligations.
The hedge fund suffered a catastrophic losses as a result of the Luna and Terra USD coin collapses in May. Terraform Labs, which was established in Singapore, said the founder of Terraform Lab, Do Kwon, is currently wanted by South Korean authorities.
The head of the MAS has, however, sought to distance Singapore from these companies and said in July that companies like Three Arrows and Terraform Labs were "so-called Singapore-based" corporations that had "little to do" with the city''s crypto regulations.
Singapore intends to establish new regulations that will render trading difficulties more difficult for retail investors.
2022 Thomson Reuters