Coinbase, a US cryptocurrency exchange, decides to make significant stakes in Zipmex. This is a digital asset marketplace in Singapore.
Coinbase was planning to buy Zipmex earlier this year. However, local media states that a US platform has already signed a memorandum of understanding pledging to engage in Zipmex. They are now seeking the US $40 million in series B+ fundraising sometime this year, with a capitalization of US $400 million.
The year 2018 was the inauguration of Zipmex which receives $52 million in Series B investment. Thus, it raises $41 million in September 2021 and another $11 million in March of this year. They will use the funds to extend the exchange’s footprint throughout Southeast Asia.
MindWorks Capital, Master Ad, Bank of Ayudhya’s Krungsri Finnovate, V Ventures, TNB Aura, as well as B Capital are Zipmex’s current shareholders. This company’s location is in Singapore, but it also has branches in Indonesia and Thailand, including Australia.
Catching Up with Industry Transitions
Coinbase might expand its presence in Singapore by acquiring Zipmex. However, the cryptocurrency crisis ends up causing the exchange to reconsider its development ambitions.
Coinbase stats earlier this month that they are withdrawing certain job offers and halting recruiting temporarily. The decision is because of the growing global economic crisis and the present macro climate. It also includes the volatility in the cryptocurrency market, according to the exchange.
Brock also mentions that the corporation has to re-evaluate its stance in light of the present economic environment. This accordingly is generally unfriendly to businesses. As per the marketplace, the extra restrictions will help it control wasteful spending as it battles to emerge stronger from this unparalleled economic attack.
Singapore is a prominent financial center that has seen a surge in cryptocurrency acceptance. Approximately 93 percent of the population has some knowledge of the crypto business. Furthermore, investors want to invest in reputable crypto exchanges in the state.
Coinbase is one of Singapore’s leading cryptocurrency exchanges, alongside Crypto.com, Capital.com, Independent Reserve, as well as Zipmex.
Companies Apply for Permission to Provide Crypto Services
The Central Bank has been implementing tough restrictions to allow enterprises that fulfill its standards and mitigate risks to operate. This occurs as Singapore seeks to establish itself as a significant participant in crypto enterprises. The payment state’s Services Act must regulate crypto marketplaces in the nation. This is primarily to avoid terrorism funding and money laundering threats.
Over 500 organizations are seeking permission to provide cryptocurrency services in Singapore. However, just a few were able to get a complete license, while more than 100 have indeed been rejected or abandoned.
Despite tougher rules, investment in Singapore’s blockchain technology crypto sector increases tenfold last year. Blockchains have numerous key characteristics, including immutability, confidentiality, and sharding. This arrangement enables safe peer-to-peer transactions. Hence, they will remove human reliance on credit and, consequently, credit middlemen. According to KPMG fintech research, Singapore will see 82 transactions for a total of $1.48 billion in 2021.