What Coinbase’s move to Singapore means for U.S. banking systems

What Coinbase’s move to Singapore means for U.S. banking systems
  • Coinbase enters the Singapore market through strategic partnership with Standard Chartered.
  • The launch was flagged off through regulatory approval from the Monetary Authority of Singapore.

On 15 March, Coinbase announced that it had secured a partnership with TradFi giant Standard Chartered. This move undermined recent directives by regulators aiming to prevent the flow of liquidity into the crypto market.

Crypto regulators issued a directive to U.S banks in February, requiring them not to engage in business with crypto companies. However, Coinbase moved forward nonetheless. According to a recent announcement, the partnership will provide a free on-ramp and off-ramp for crypto users in Singapore.

Exciting news for our Singapore customers! Coinbase is introducing free bank transfers and Singpass integration, making it easier to join our platform. We’ve upgraded our help center, created Coinbase Learning and are offering 200+ assets for trading. 👀👇https://t.co/iQgt51esvy

— Coinbase (@coinbase) March 15, 2023

Coinbase also revealed that it updated its help center so that it can offer learning material for over 200 crypto assets. This is a surprising change of pace for Singapore users because regulators in the country previously criticized cryptocurrencies.

Are CEXes shifting its focus outside the U.S.?

The Coinbase announcement came at a time when the U.S. market has been facing economic turmoil due to inflation and a recent banking crisis. On top of that, the U.S. appears to be taking an aggressive stance against the crypto market.

This new development underscores Coinbase’s push into other promising markets outside the U.S. Singapore is one of those markets that has also been embracing opportunities in the blockchain and crypto space. The exchange plans to leverage the Singpass platform, which is native to Singapore, part of the conduit for its crypto offerings.

Coinbase secures regulatory approval from Singaporean authorities

Coinbase announced through its official blog that its foray into Singapore is just the start of its global expansion. Part of the reason the Asian country is among the first international targets for Coinbase is regulatory approval. Coinbase is now allowed to offer regulated Digital Payment Token (DPT) services through in-principal approval. The Monetary Authority of Singapore (MAS) offered the approval.

The regulatory path underscores Singapore’s favorable stance for the crypto market. This theme has reverberated across multiple jurisdictions in the Asian region and even in some European countries. Numerous other countries may follow in Singapore’s footsteps, especially now that the crypto market is maturing. FOMO will be the key driver as more countries play catchup to avoid missing out on opportunities.

Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael’s writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis.
His interests include motorcycles and exotic cars.

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