Despite Massive Q2 Loss, Coinbase Expands In Singapore; Hires 100 Employees

Coinbase has received in-principle approval from Singapore's financial regulatory authority to operate as a crypto broker in the city-state.

The Monetary Authority of Singapore (MAS) granted the in-principle approval to Coinbase under the Payment Services Act, which would enable the company to provide its services to citizens of the city-state, Bloomberg reported Monday.

Coinbase is the world's second-biggest crypto exchange by spot volume. Despite suffering a massive loss in Q2, it hired 100 employees in the Singaporean region to work for Coinbase's local unit as the exchange is "starting to get a little bit of appetite back," according to a Coinbase executive.

The approval comes at a time when regulators are stepping in to prevent high-profile blowups and financial failures like the bankruptcy of crypto hedge fund Three Arrows Capital (3AC) and the collapse of the Terra ecosystem.

Additionally, 15 other crypto firms have also reportedly received similar approvals from Singapore's financial regulator, including rival crypto exchange Crypto.com, which received a green light from French authorities last month.

"We see Singapore as a strategic market for institutional clients as well," said Hassan Ahmed, chief executive of Coinbase's Singapore unit. He added that Australia and Japan are "very key markets within the broader Apac sort of region that we're going to continue to double down on."

The city-state is a crucial "beachhead" for Coinbase's planned expansion in the Asia-Pacific region as the company is also eyeing Indonesia and Vietnam markets, revealed Ahmed.

Meanwhile, 2022 has not been a very positive year for Coinbase crypto exchange after it reported a loss of $1 billion in the second quarter of the year. The exchange's crypto holding took the biggest toll on its profitability as the price of Bitcoin (BTC) dropped 72.30% from its all-time high of $69,000, which was witnessed on Nov. 10, 2021, according to CoinMarketCap.