Thursday, August 11 2022

Cryptocurrency exchange Binance could withdraw its Singapore license application and look elsewhere in its search for a global headquarters, reported business time in Singapore today, citing anonymous sources familiar with the matter.

The cryptocurrency exchange currently operates in Singapore under the name or Binance Asia Services (BAS), with a license exemption while its license application for the provision of digital payment token services is pending. review by the Monetary Authority of Singapore (MAS).

The exemption allows businesses to provide services while their license applications are being processed and will cease when an entity’s license application is approved, rejected or withdrawn. The withdrawal of its license by Binance Singapore will mean that its users in Singapore will no longer be able to buy or trade cryptocurrencies legally through the or platforms.

Binance has already stopped supporting crypto trading on its main platform for Singapore users after MAS added to its investor alert list in September, which flags unregulated entities that may have gave the public the impression that they are authorized by MAS.

Binance Singapore’s pullout depends on MAS’s change of stance, according to the Business Times, citing a source who requested to remain anonymous because the matter is private. Binance is expected to make a decision by the end of the year, the Business Times said.

In response to a request for comment, a Binance spokesperson said Forkast. News today that “our policy is not to comment on rumors or speculations. We will contact you when we have something to announce.

See the related article: Binance users burned by outage team up to take legal action

A key financial center in Asia, Singapore has taken a proactive stance – with “strict regulation” – towards cryptocurrencies as it positions itself as a fintech and crypto hub.

The MAS passed the Payment Services Law (PS Law) in 2019, which entered into force in January 2020, to regulate the crypto industry primarily for the risks of money laundering and terrorist financing. 170 license applications by digital payment token service providers have been submitted and to date MAS has granted licenses to FOMO Pay, a Singapore-based payments fintech, DBS Vickers, the brokerage arm of DBS Bank, and Independent Reserve, an Australian cryptocurrency exchange and TripleA, a provider of cryptocurrency payments.

See the related article: Huobi Group to Establish Regional Hub in Singapore

Binance, the world’s largest cash and derivatives cryptocurrency exchange by far in terms of trading volume, has experienced massive growth since its inception in 2017 in China. But the exchange, which currently has no head office, has come under fire from regulators around the world for its equity tokens, derivatives trading services and lax know-your-customer (KYC) practices.

Binance has since taken steps to restrict its product offerings and practices, including reducing high leverage, enforcing mandatory KYC, and strengthening its compliance team. In August, Binance Singapore announced the appointment of Richard Teng, former head of regulation of the Singapore Stock Exchange (SGX), as chief executive officer, with the aim of strengthening his ranks as a leader with former regulators. The exchange has also been looking for a seat and has stepped up engagement with regulators.

See the related article: Binance crypto exchange wants centralized headquarters amid regulatory heat

Singapore, where Binance CEO Changpeng Zhao is said to reside, has been touted as a potential candidate for the company’s headquarters with “pro-crypto” Dubai where Zhao recently bought a new home and France, where Binance finances, recently announced a € 100 million crypto and blockchain initiative.

Binance has decided on the location of its global headquarters and will announce it after Zhao contacts regulators, according to a Bloomberg report in November.

See the related article: How Singapore is emerging as a haven for China’s crypto industry exodus


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