Singapore has given Coinbase regulatory approval to provide cryptocurrency-related services in the island nation. This is a big win for Coinbase as it continues to expand internationally despite continued pressure on the crypto market.
Jakub Pozhicki | Nurphoto | Getty Images
US Cryptocurrency Exchange Coinbase has received a key regulatory license in Singapore as it expands overseas, the company said on Tuesday.
The Monetary Authority of Singapore (MAS), the country’s central bank, has given Coinbase approval in principle to provide regulated digital token products and services in the island nation.
Coinbase’s regulatory approval comes as the crypto market remains under pressure. About $2 trillion was wiped off the market value with major tokens like bitcoin and ether on red this year.
The contagion of major project collapses and corporate bankruptcies has spread throughout the industry. Coinbase announced in June that it was cutting 18% of its workforce.
However, the US exchange has pushed ahead with international expansion and is looking to hire people in new markets in Europe.
Coinbase is making solid investments in Singapore. Last year, the company announced that Singapore would be one of its technology development hubs. The island nation is also the hub of Coinbase’s institutional investor-focused business in the Asia-Pacific region.
“Receiving this in-principle approval from MAS is an important step as we plan to launch our full suite of retail, institutional and ecosystem products,” Coinbase said in a blog post on Tuesday.
MAS has granted such approvals to 15 different firms as Singapore seeks to build its reputation as a regulated global hub for the cryptocurrency industry.
Even as central banks warn of the “speculative” risks of cryptocurrencies and seek to tighten rules around trading for retail investors, it is still trying to attract businesses to set up shop in Singapore.