Singapore has granted Coinbase regulatory approval to run cryptocurrency-related services in the island state. This is a big win for Coinbase as it continues to expand internationally despite continued pressure in the crypto market.
Jakub Porzycki | Nurphoto | Getty Images
US cryptocurrency exchange Coinbase has received a key regulatory license in Singapore as it accelerates overseas expansion, the company announced on Tuesday.
The Monetary Authority of Singapore (MAS), the country’s central bank, has granted Coinbase approval in principle to provide regulated digital token products and services in the island state.
Coinbase’s regulatory approval comes as the crypto market remains under pressure. Approximately $2 trillion has been wiped from market value with major tokens like bitcoins and ether in the red this year.
spread of the collapse of major projects and corporate bankruptcies has spread throughout the industry. Coinbase announced in June it laid off 18% of its workforce.
However, the American stock market has continued its international expansion and is are looking to hire people in new markets in Europe.
Coinbase has made regular investments in Singapore. Last year, the company announced that Singapore would become one of its technology development hubs. The island state is also the hub of Coinbase’s business focused on institutional investors in the Asia-Pacific region.
“Getting this approval in principle from MAS is an important milestone as we plan to launch our full suite of retail, institutional, and ecosystem products,” Coinbase said in a blog post on Tuesday.
MAS has given such endorsements to 15 different companies as Singapore seeks to build its reputation as a regulated global hub for the cryptocurrency industry.
While central banks have alerted to the “speculative” risks of crypto-currencies and has sought to tighten trading rules for retail investorshe is still trying to attract companies to set up shop in Singapore.