The cryptocurrency exchange aims to introduce their suite of retail, institutional and ecosystem products following the approval.
Coinbase, one of the largest cryptocurrency exchanges globally, has received its In-Principle Approval from the Monetary Authority of Singapore (MAS) and plans to introduce its full suite of retail and institutional products to local customers.
Under the Payment Services Act (PSA), the licence will allow Coinbase to offer regulated Digital Payment Token products and services in the country. The qualifying process sees applicants addressing areas such as customer protection, a strong IT infrastructure, and Anti-Money Laundering/Combating the Financing of Terrorism measures (AML/CFT) before they are cleared for the In-Principle licence approval.
According to its blog post, Coinbase has been investing in various Singapore-based Web3 startups through its venture capital arm, Coinbase Ventures, and they have been working with Web3 communities such as ACCESS, the Singapore Fintech Association and Advisory Singapore to nurture relations locally.
The approval comes amidst a downturn in the crypto market, following a series of cryptocurrency platforms becoming insolvent after the collapse of the Terra ecosystem. One of these platforms is cryptocurrency lending platform Hodlnaut which gained the In-Principle Approval from MAS in March this year. The company has since suspended withdrawals in August and are currently under interim judicial management.
Managing Director of MAS Ravi Menon announced near the end of August that the central institution is planning to roll out new regulations that will restrict retail trading on cryptocurrencies. These may include customer suitability tests and restricting the use of leverage and credit facilities.
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