Coinbase Global stock rose in the pre-market trading Monday after the U.S. largest cryptocurrency exchange secured a Major Payment Institution (MPI) license in Singapore.
According to Reuters, The Monetary Authority of Singapore (MAS) has officially granted Coinbase the coveted license. This move empowers Coinbase to extend its digital payment token services to individuals and institutions in Singapore.
Coinbase Global, Inc. (NASDAQ: COIN), the world’s largest publicly traded cryptocurrency exchange, received preliminary approval for this license in October 2022.
Singapore has undeniably risen as a prominent cryptocurrency hub in Asia in recent years, drawing the attention of digital asset firms worldwide, including those from China and India. Coinbase views Singapore as a vital market, especially in light of survey data indicating that 32% of Singaporeans own cryptocurrencies or have had previous involvement in the crypto sphere.
The MAS, Singapore’s central bank and financial regulator, has laid down strict standards for granting licenses to cryptocurrency firms. MAS demands robust anti-money laundering controls as part of the application process, and it’s worth noting that many applicants have failed to meet this requirement.
Furthermore, MAS recently announced plans to introduce stricter regulations on retail cryptocurrency trading. This move will address concerns about the irrationally oblivious attitude of some investors to the risks associated with cryptocurrency trading.
Coinbase Global stock is up over 5% at $79.26 at the time of publication.