Binance drops application for SG licence, to cease local ops by 2022

Cryptocurrency exchange Binance's local arm, Binance Asia Services, has withdrawn its application for a licence by the Monetary Authority of Singapore (MAS) to provide cryptocurrency services in Singapore. According to Bloomberg, registrations, crypto and currency deposits as well as trading on Binance.sg will be closed effective immediately. Binance Asia Services will also cease all operations in the market by 13 February 2022. To that end, all Binance.sg users will be required to close all open positions and withdraw their Singapore dollar and cryptocurrency assets before its closure, Bloomberg reported. 

According to The Business Times (BT), Binance has been contemplating its decision since last month, after Binance Asia Services' application - backed by Temasek-linked Vertex Ventures - remained in regulatory limbo for months. Binance Asia Services also recently acquired an 18% stake in Singapore-regulated private securities exchange, Hg Exchange (HGX), in an attempt to help with its regulatory hurdles, as HGX was recently granted a recognised market operator licence from the MAS, BT reported. It had also planned to set up a blockchain innovation hub in Singapore, exploring initiatives such as incubation programmes, blockchain education and further investment opportunities.

As of last month, Binance was among the remaining 70 applicants for a licence, Bloomberg reported. According to BT, This will also put Singapore out of the running as Binance plans to announce its decision for a global home soon; paving the way for a Europe and Middle Eastern push.

Earlier in September, Binance removed its app from Singapore iOS and Google Play stores and also urged users to remove related trade ads to avoid potential trading disputes. This came after MAS ordered Binance to stop providing payment services in Singapore, multiple media reports including The Straits Times (ST), BT, and Channel NewsAsia said. Binance also clarified in a website announcement that it is not operating any official Telegram or online communication channels in Singapore. 

On 2 September, MAS placed Binance on its Investor Alert List to warn consumers that the company is not licenced or regulated by MAS to provide payment services in Singapore. The alert list, which currently has 699 companies listed, shows firms that are not licenced by MAS but might have given investors the impression that they were regulated by the MAS. According to multiple media reports, MAS found that Binance might be "in breach of the Payment Services Act" for continuing to offer payment services to, and "soliciting such business from Singaporean residents without an appropriate licence".

In August, Binance had its product offerings restricted in Malaysia and had to cease products and offerings including P2P merchant applications. It also asked users to remove related trade ads by 13 August. Meanwhile, ST reported that Hong Kong's and Japan's financial regulators also warned consumers about Binance, stating that it is not registered to conduct business within the country. At the same time, Binance Markets, the company's British unit, was also banned in June this year from carrying out regulated business in the country.

Photo courtesy: 123RF

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