‍

Coinbase {{ m-tag option="price" ticker="COIN" currency="USD" }}, a San Francisco-based cryptocurrency exchange, has fortified its position in the Southeast Asian market by obtaining a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This pivotal development comes a year after the exchange received initial approval from the regulatory body. In this article, we will explore the significance of this license, the services Coinbase plans to offer in Singapore, and its recent financial performance, including specific numbers.

‍
‍

Regulatory Milestones:
‍

Coinbase's MPI license is a major regulatory milestone that comes a year after preliminary approval from MAS. This license allows Coinbase to join an elite group of over a dozen firms authorized to offer digital payment token services in Singapore. It's worth noting that Coinbase had initially considered acquiring the now-defunct crypto exchange Zipmex in 2022 but later decided to proceed without the acquisition.

‍
‍

Service Expansion & Local Adaptation:
‍

With the MPI license in hand, Coinbase is set to offer a wide array of cryptocurrency services to both individuals and institutions in Singapore. The exchange already provides trading and staking services. Staking involves locking up users' digital tokens for a specific period to validate transactions on the blockchain, rewarding them with additional tokens.

‍

In response to local demand, Coinbase has introduced convenient funding options such as PayNow and FAST bank transfers, along with the SingPass onboarding system. The company's Singapore team is nearly 100-strong, including roles in product management, engineering, business development, compliance, and legal.

‍
‍

Singapore as a Strategic Market:
‍

Coinbase views Singapore as a key market, aligning well with its global mission and objectives. The company has invested in over 15 Web3 startups in Singapore through its investment arm, Coinbase Ventures. According to a Coinbase survey, 25% of Singaporeans believe that cryptocurrency is the future of finance, and 32% have either owned or currently own cryptocurrency assets.

‍

Financial Highlights:
‍

Coinbase has shown remarkable resilience in its financial performance. In Q2, the company reported a net loss of $97 million, a significant decrease from a staggering $1.1 billion loss a year earlier. Additionally, its Q2 revenue was $707.9 million, surpassing the estimated $631.2 million and marking a 12% decline compared to the previous quarter. Despite these challenges, Coinbase's shares have more than doubled in 2023.

‍
‍

Conclusion
‍

The acquisition of the MPI license from MAS is a significant step for Coinbase in expanding its footprint in Southeast Asia. The license enables the company to offer an extended range of services and positions it strongly in a market that is fast becoming a global hub for cryptocurrency and blockchain technology. With a robust team in place, strategic investments in Web3 startups, and strong financial performance, Coinbase is well-positioned for sustained growth in Singapore and beyond.

‍

‍
‍
The information on mexem.com is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions.
‍
‍