The global cryptocurrency landscape continues to evolve as regulatory frameworks take shape across key financial hubs. In a significant development, Coinbase has received in-principle approval from the Monetary Authority of Singapore (MAS) to offer regulated digital asset services under Singapore’s Payment Services Act. This milestone positions Coinbase as one of the select few international crypto platforms moving closer to full compliance in one of Asia’s most strategic fintech markets.
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A Strategic Move in Asia’s Fintech Hub
Singapore has long been recognized as a forward-thinking financial center with a balanced approach to innovation and regulation. Since the implementation of its licensing regime in 2019, only around 15 companies have secured or been granted in-principle approval for digital payment token services. Among them are Crypto.com, which received similar recognition earlier in the year, and DBS Vickers, the brokerage arm of Singapore’s largest bank, which was approved in 2021.
Coinbase’s progress reflects its deeper commitment to institutional-grade compliance and long-term presence in the Asia-Pacific region. The exchange currently employs nearly 100 people in Singapore and views the city-state as a pivotal hub for Web3 innovation and institutional adoption.
Hassan Ahmed, Regional Director for Southeast Asia at Coinbase, emphasized this strategic vision: “We view Singapore as a key market for Web3 innovation and a global center for digital finance.” He further noted that alongside Australia and Japan, Singapore is among the top priority markets where Coinbase is intensifying its efforts to build infrastructure, partnerships, and compliant service offerings.
Why Singapore Stands Out in Crypto Regulation
While other Asian jurisdictions like Hong Kong have begun tightening their regulatory stance, Singapore has maintained a relatively open yet cautious environment—making it an attractive destination for blockchain firms seeking clarity and stability.
However, MAS has not issued licenses liberally. According to industry reports, over 170 companies applied for digital asset licenses in 2021 alone, but more than 100 either withdrew their applications or were rejected. By the end of that year, only three entities held full licenses, with the number of exempt providers also significantly reduced.
This rigorous vetting process underscores MAS’s dual mandate: fostering financial innovation while safeguarding market integrity and consumer protection.
Even industry giants have struggled to meet Singapore’s standards. Binance, the world’s largest cryptocurrency exchange by volume, withdrew its license application in 2021 and eventually shut down its local entity, Binance.sg, in early 2023.
Regulatory Caution Amid Market Turmoil
The collapse of Terra (LUNA) and the implosion of Three Arrows Capital in 2022 sent shockwaves through the crypto industry—and particularly affected investor sentiment in Asia. In response, MAS has adopted an increasingly cautious tone toward retail participation in crypto markets.
Ravi Menon, Managing Director of MAS, delivered a pointed message during a virtual summit hosted by the regulator in August 2025. While acknowledging the transformative potential of distributed ledger technology (DLT), he sharply criticized speculative crypto trading.
“Cryptocurrency trading is driven by speculation, not economic utility. Prices bear no relation to any underlying value on the blockchain. Extreme volatility disqualifies them as either currency or sound investment.”
Menon reiterated that MAS does not consider cryptocurrencies suitable as money and views them as posing high risks to retail investors. He stressed that outside of speculative use, crypto assets currently serve little function beyond the blockchain ecosystem.
Five Pillars of MAS’s Digital Asset Oversight
To guide its regulatory approach, MAS has outlined five core objectives:
- Preventing money laundering and terrorist financing
- Protecting retail consumers from fraud and loss
- Ensuring financial stability
- Maintaining confidence in the financial system
- Supporting responsible innovation in DLT and tokenization
Currently, the authority is focusing heavily on anti-money laundering (AML) compliance—not just for local firms but also for foreign operators registered in Singapore serving international clients.
MAS has already taken concrete steps to limit exposure. Since January 2025, it has restricted marketing of crypto services in public spaces, removed numerous Bitcoin ATMs, and banned advertisements in transit systems like the MRT.
Menon confirmed that further measures are under consideration to reduce consumer harm: “We are exploring ways to introduce friction into retail crypto purchases—such as mandatory suitability assessments and limits on leverage and credit tools.”
Still, he acknowledged the limitations of national regulation in a borderless digital world: “A complete ban on retail access is unlikely to work. With just a smartphone, Singaporeans can access countless offshore exchanges. Our goal isn't to block access—but to ensure informed participation.”
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FAQs: Understanding Crypto Regulation in Singapore
Q: What does 'in-principle approval' mean from MAS?
A: It means MAS has conditionally accepted Coinbase’s application pending final checks and compliance requirements. Once fulfilled, the company will receive full licensing under the Payment Services Act.
Q: Can retail investors still buy crypto in Singapore?
A: Yes, but with growing restrictions. MAS allows retail access but discourages speculative behavior through advertising bans, removal of ATMs, and proposed suitability tests.
Q: Why did Binance exit Singapore?
A: Binance withdrew its license application due to challenges in meeting MAS’s stringent AML and governance requirements. It later closed its local platform, Binance.sg.
Q: Is Singapore banning cryptocurrency?
A: No. MAS distinguishes between banning crypto and regulating it responsibly. The focus is on curbing reckless speculation while supporting blockchain innovation and institutional use.
Q: How does MAS view stablecoins?
A: MAS supports stablecoins only if they maintain proper reserves and are used for legitimate payments—not speculation. Regulatory scrutiny ensures stability and trust.
Q: What are the risks of unregulated crypto platforms?
A: Users may face higher risks of fraud, loss of funds, lack of recourse, and exposure to money laundering activities. Regulated platforms must adhere to strict security and reporting standards.
The Road Ahead for Global Exchanges
Coinbase’s advancement in Singapore signals a broader trend: the era of unregulated crypto operations is ending. As governments worldwide establish clearer rules, exchanges must choose between compliance or exclusion from major markets.
For users, this shift brings greater protection and transparency. For innovators, it creates a stable foundation to build next-generation financial products—from tokenized assets to decentralized identity systems.
While challenges remain—especially in balancing innovation with investor safety—Singapore’s model offers a blueprint for how regulators can engage with the crypto economy without stifling progress.
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As Coinbase moves toward full licensure, its success could inspire other compliant players to deepen their presence in Asia—ushering in a new phase of mature, responsible growth for the global crypto industry.