Singapore has cemented its position as a leading hub for digital asset innovation with the Monetary Authority of Singapore (MAS) granting Coinbase a full Major Payment Institution (MPI) licence under the Payment Services Act. As the largest cryptocurrency exchange in the United States, this regulatory milestone enables Coinbase to expand its suite of digital payment token (DPT) services for both retail and institutional clients across the country.
The final approval comes roughly one year after Coinbase received in-principle authorisation from MAS in October 2022. With this full licence, the platform can now offer enhanced trading, custody, and staking services while deepening partnerships with regulated financial entities such as banks and asset managers.
👉 Discover how global crypto platforms are navigating regulated markets like Singapore.
Strengthening Institutional Ties in Asia’s Financial Hub
Hassan Ahmed, Country Director at Coinbase Singapore, emphasized that the full licence significantly accelerates the firm’s ability to build trusted relationships with regulated stakeholders. "Where we see the (full licence) also come into play is in helping us to accelerate relationships with stakeholders, particularly those that are regulated, such as banks," Ahmed said.
This development marks a strategic leap forward for Coinbase’s institutional business ambitions in Asia. By aligning with Singapore’s rigorous compliance standards, the exchange positions itself as a credible partner for traditional finance players exploring blockchain-based assets and Web3 integrations.
Coinbase currently offers crypto trading and staking services in Singapore. Staking allows users to lock up their digital tokens to support blockchain network operations—such as validating transactions—in return for rewards. This functionality is increasingly appealing to both retail investors seeking yield and institutions evaluating long-term digital asset strategies.
Building a Sustainable Local Presence
Since establishing its presence in Singapore back in 2015—well before formal DPT regulations were introduced—the company has steadily grown its footprint. Today, it employs around 100 professionals based locally, spanning key functions including product development, engineering, legal, compliance, and business growth.
When asked about future hiring plans, Ahmed noted that expansion will be “responsible and sustainable,” aligned with business needs and market opportunities. The firm’s long-term commitment is further underscored by its designation of Singapore as its Asia-Pacific technology hub.
Through Coinbase Ventures, its investment arm, the company has backed more than 15 local Web3 startups—fueling innovation within Singapore’s thriving ecosystem, which now hosts over 700 Web3 firms.
Meeting Local Demand with Tailored Solutions
Recognizing the unique preferences of Singaporean users, Coinbase introduced several region-specific features earlier in 2023. These include seamless funding options via PayNow and FAST (Fast And Secure Transfers), two widely used local bank transfer systems. Additionally, the integration of Singpass—Singapore’s national digital identity system—streamlines user onboarding, enhancing security and accessibility.
These enhancements reflect a broader trend: global crypto platforms adapting to local regulatory and consumer landscapes to drive adoption.
According to a Coinbase survey conducted in May, 25% of Singaporeans believe cryptocurrency represents the future of finance, while 32% have owned or currently own some form of crypto asset. These figures highlight strong public interest and growing mainstream acceptance in one of Asia’s most advanced financial markets.
Regulatory Clarity Fuels Growth
Singapore’s progressive yet balanced approach to crypto regulation has made it an attractive destination for compliant digital asset firms. The MAS framework ensures consumer protection and financial stability while fostering innovation—making it a model for other jurisdictions.
For Coinbase, securing full licensing was a multi-year process. The firm submitted its initial application before July 2020, demonstrating early intent to operate within Singapore’s regulatory perimeter. The October 2022 in-principle approval allowed it to offer regulated DPT services during the final assessment phase.
Now fully licensed, Coinbase is better positioned to serve both individual investors and institutional clients with confidence.
Frequently Asked Questions
Q: What does a Major Payment Institution licence allow Coinbase to do in Singapore?
A: The MPI licence permits Coinbase to provide expanded digital payment token services, including crypto trading, custody, and staking, while enabling deeper collaboration with regulated financial institutions.
Q: How does the full licence benefit institutional clients?
A: It enhances trust and compliance credibility, allowing institutional investors and financial firms to engage with Coinbase knowing it meets MAS’s strict regulatory requirements.
Q: Is Coinbase available to all Singapore residents?
A: Yes, retail users in Singapore can access Coinbase’s platform for buying, selling, and staking cryptocurrencies, supported by local payment methods like PayNow and FAST.
Q: Why did it take over two years to get full approval?
A: MAS conducts thorough due diligence on applicants’ risk management, governance, anti-money laundering controls, and operational resilience—processes designed to ensure only fit-and-proper firms enter the market.
Q: Does the licence cover all crypto products?
A: The licence covers regulated DPT services; however, offerings must comply with ongoing MAS guidelines, including restrictions on retail leverage trading and marketing practices.
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Financial Performance Amid Regulatory Challenges
Despite achieving significant regulatory progress internationally, Coinbase continues to face scrutiny in its home market. In June 2023, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit alleging that Coinbase operates illegally by failing to register as a securities exchange, broker, and clearing agency.
Coinbase has responded by filing a motion to dismiss the case, arguing that many crypto assets are not securities and that the SEC’s approach lacks clarity.
Meanwhile, the company’s financial performance shows resilience. In its second-quarter earnings report, Coinbase posted a net loss of $97 million—down sharply from a $1.1 billion loss a year earlier—marking its sixth consecutive quarterly loss but a substantial improvement. Revenue reached $707.9 million, falling 12% year-on-year but exceeding analyst estimates of $631.2 million.
Notably, Coinbase’s stock has more than doubled in value since the start of 2023, reflecting investor confidence in its global expansion strategy and regulatory preparedness.
👉 Explore how leading exchanges maintain growth amid evolving regulations worldwide.
Conclusion
Coinbase’s acquisition of a full Singapore licence underscores the importance of regulatory alignment in building sustainable crypto businesses. As digital assets become increasingly integrated into mainstream finance, platforms that prioritize compliance, local adaptation, and institutional-grade infrastructure will lead the next phase of adoption.
With Singapore serving as a strategic gateway to Asia, Coinbase’s strengthened presence not only benefits its own growth but also contributes to the region’s evolving Web3 landscape—where innovation meets regulation in balanced synergy.
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