Max E.Mon, Dec 13, 2021 7:13 PM
Binance's Singapore Subsidiary Is Winding Down
Crypto exchange Binance has decided to suspend trading via its Singapore branch. The reason for the decision was pressure from regulators.
Bloomberg, citing the company, reports that the Asian branch of the platform, Binance Asia Services Ltd. (BAS) intends to withdraw the Monetary Authority of Singapore (MAS) license application. The email from Binance Asia says that the Binance.sg platform will shut down and close by February 13th.
According to the regulator, the company's activities do not comply with the requirements of the law: its representatives launched a business without a license.
In August, MAS included Binance Asia Services on its "investor warning list," however, the regulator acknowledged that Binance Singapore was operating "under an appropriate exemption." In other words, the exchange was temporarily allowed to operate without a license, in accordance with the Singapore Payment Services Act, which will take effect in January 2020. Prior to the law’s entry into force, the exchange carried out “alleged regulated activities”.
The exchange advised users to close open positions and withdraw assets by February 13, 2022 – by this time the Singapore branch of Binance.sg will officially shut down. According to Richard Teng, CEO of Binance Singapore, the decision is dictated by "considerations of global development" of the project. He assured that the exchange will try to help clients transfer assets to other services or wallets, and expressed hope for cooperation with MAS in the future.
The CEO noted that Singapore is a dynamically developing center for financial technology, and the Southeast Asia region is of particular importance to the exchange. Teng said that the project intends to further invest in the region, in which Singapore will become one of the hubs for technology development and research.
The project team intends to repurpose BAS into a technology center, whose experts will be engaged in the research and development of new projects in the field of blockchain. Binance Asia Services will lead this business line. Just a week ago, Binance Singapore acquired an 18% stake in the local licensed security token platform Hg Exchange.
Binance is facing problems not only in Singapore – regulators in other countries, including the UK, have filed claims against its activities. Faced with obstacles, the exchange is working to obtain licenses. In December, Binance CEO Changpeng Zhao announced that the exchange intends to resume operations in Foggy Albion in 6-18 months.
It is noteworthy that until recently, there were rumors that the city-state of Singapore would become the headquarters of Binance. Founded in China in 2017, Binance Holdings Ltd. has no headquarters yet. Canadian citizen Changpeng Zhao has previously said that he is attracted to Singapore, France and the Middle East. In particular, he considers Dubai a jurisdiction very supportive of cryptocurrencies.