Singapore: Singapore cryptocurrency users can now enjoy local bank transfers free of cost. Cryptocurrency exchange Coinbase enables customers to move funds to and from accounts through local banks.
The opportunity will facilitate the customers in smoothing one path to another and investing in digital assets at a time when digital markets are on edge over financial stability and crypto banking.
As per the company, transfers in Singapore dollars are transmitted by a traditional bank Standard Chartered, and the best part is that it carries no fee.
Previously, users could only buy cryptocurrency through a Mastercard debit, Visa, or credit card. However, they could do any crypto transaction in and out of their Coinbase account.
Hence, Standard Chartered will offer that connection to on-and-off ramp their money. The time frame in getting a new banking partner is noteworthy as several crypto firms.
Whereas hedge funds and asset managers are constantly struggling to replace such connections in the US after the turmoil in the financial sector.
Hasan Ahmed, Coinbase’s country director for Singapore, said in his interview that the action was part of the company’s international expansion strategy.
Whereas competitors Crypto.com and Gemini already provide a similar services.
According to Hassan Ahmed, Coinbase received in-principal approval from the Monitory Authority of Singapore (MAS) last year. To provide payment transaction services, the city-state is looking to ramp up its Singapore retail offerings.
In addition, he also stated that “for banking integration in particular, definitely I would say that the backdrop is sort of a little interesting and in contrast”.
Though, “discussions with Standard Chartered were in process before the collapse of three US banks in the last week,” he added.
Though Singapore is a fast-growing country with a stable economy that has welcomed crypto businesses, at the same time, it has been encouraging retail involvement.
Coinbase collaboration with Standard Chartered will open opportunities for users to receive real-time payments and enables the exchange to reconcile user accounts automatically, stated Mr Ankur Kanwar, head of cash products for Singapore.
Last year in October, the MAS offered rules that would forbid trading businesses from offering retail customers incentives and rewards or financing.
Whereas, due to the spectacular collapse of the cryptocurrency exchange, FTX continue to revert through markets. Coinbase’s announcements also reflect confidence in the cryptocurrency market.
Crypto-focused bank Silvergate Capital Corp. became the latest casualty as it announced it would close its operation earlier in March.
Silvergate Capital announced it would wind down, followed by the failures of Silicon Valley Bank and Signature Bank. This backdrop prompted US officials to introduce a new deposit-protecting backstop.
However, Silvergate and Signature operated real-time 24/7 payment networks for the cryptocurrency industry facilitating the flow of money into and out of the sector.
Though, their loss is particularly severe for digital assets.
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