After announcing a “refocus” of its ambitions in Singapore, Binance has withdrew its application for a license
Binance withdrew its application for a Singapore license
Binance, a cryptocurrency exchange, has withdrawn its application for a Singapore license. The development follows the exchange’s declaration that it will “refocus” its activities in Singapore to become a “blockchain innovation powerhouse.”
The mission will be led by Binance Asia Services, the exchange’s Singaporean subsidiary, with the goal of growing the global blockchain ecosystem.
“Singapore is a thriving fintech powerhouse, and Southeast Asia is a key market for us.” In a prepared statement, Richard Teng, CEO of Binance Singapore, stated, “We want to make further investments in the region with Singapore as one of the centers for technology, research, and development.”
“We always prioritize our users, thus the decision to shut down Binance.sg was not made lightly.” “Our top priority right now is to assist our Singapore users in transferring their holdings to other wallets or third-party services,” Teng added.
Changpeng Zhao (CZ), the exchange’s CEO, also commented on Twitter.
“Last week, Binance made a significant investment in regulated exchange HGX. “Our own application became somewhat redundant as a result of this investment,” he explained.
CZ may have claimed that their application for a license was no longer necessary, but the exchange’s decision to revoke its license marks the end of yet another failed attempt to obtain the necessary operating licenses—much like what happened in the UK.
Singapore and Binance
During Binance’s tumultuous regulatory summer, the exchange ran into problems with the Singapore Monetary Authority (MAS).
Binance Asia Services was temporarily exempted from the Payment Services Act’s requirement for a license in August. This was due to the fact that the entity was engaging in potentially regulated activities prior to the Act’s implementation in January 2020.
The MAS was able to assess license applications retrospectively as a result of this. However, there was never an assurance that the trade would work in its particular context.
Furthermore, a “significant number” of firms similar to Binance had their license applications rejected by the MAS, according to the spokesperson.
Binance was placed on the country’s Investor Alert List by the MAS a month later. The MAS adds entities to this list when it feels they “may have been mistakenly viewed as being licensed or controlled by MAS.”
