Crypto exchange Coinbase receives full Singapore licence

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 an in-principle approval from the Monetary Authority of Singapore (MAS). It joins more than a dozen firms which are licensed to offer digital payment token 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.

Currently, it provides trading and staking services. Staking is the process where users’ digital tokens are locked up for a certain period to validate transactions on the blockchain, earning them more tokens as a reward.

Mr Hassan Ahmed, the country director of Coinbase Singapore, previously told The Straits Times that the Singapore team comprises “close to 100 people”, including product managers, engineers, business development, compliance and legal.

In the statement on Monday, he said Singapore’s progressive stance towards crypto and its robust Web3 ecosystem with more than 700 Web3 companies makes it a natural fit for the company.

Mr Ahmed added that the firm’s survey in May indicates 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 this year convenient funding options – including PayNow and FAST bank transfers – alongside the SingPass onboarding system, in response to local demand.

Its Asia Pacific technology hub is located in Singapore, and it has invested in over 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 revenue exceeded estimates.

Its Q2 net loss – the sixth straight quarterly loss – was down to US$97 million (S$130 million) from a record US$1.1 billion a year earlier.

Revenue in Q2 declined 12 per cent to US$707.9 million, beating the estimate of US$631.2 million.

Even so, the shares have more than doubled in 2023.