Bitcoin exchange In order to be fully regulated in Singapore, Coinbase has received preliminary permission for a digital asset license from the central bank of the city-state.
Although Coinbase has been operating in Singapore since 2015, it has recently received conditional authorisation under the Payment Services Act from the Monetary Authority of Singapore (MAS) (PSA).
The PSA, which reinforced regulatory standards for various payment services offered in the city-state, including electronic payments and crypto-related exchange services, went into effect in January 2020.
Hassan Ahmed, Coinbase's regional director for Southeast Asia, said the exchange is looking to grow further across Singapore, which it regards as a “strategic market and global hub” for Web3 innovation, according to Reuters. The business views this as a significant milestone.
A list of 54 other organizations had received exemption from licensing for the provision of digital payment token services, including Coinbase Singapore, which has about 100 employees. This allowed the company to continue operations until gaining its temporary approval.
The in-principle permission resembles having a full license in that it permits the exchange to lawfully provide its services to clients, including institutional types, subject to continuous discussion and ratification by MAS.
The exchange's subsidiary in Singapore has now joined a list of 17 organizations that have been given in-principle approval, including Paxos and Crypto.com in March and June, respectively.
A further 100 organizations have been flatly denied, leaving more than 160 in the queue to be approved as Digital Payment Tokens under the PSA.
The MAS has only issued licenses for digital payment tokens to seven organizations, with Singapore-based fintech FOMO Pay receiving the first one last year. Independent Reserve, an Australian exchange, and DBS's brokerage division soon after in October of that same year.
Singapore is frequently praised as a region with both strict regulatory frameworks for digital assets and fintech innovation.
Local officials closed a loophole in April that had permitted domestically registered foreign virtual asset service providers to provide their services outside of their country of origin.