Binance Singapore Affiliate Will Withdraw License Application in the Country
Key Takeaways:
- Fiat-to-crypto solution Binance. sg to slow down operations in Singapore.
- The company said that it will primarily refocus on blockchain development.
Binance Asia Service Ltd. the Singaporean affiliate of the largest cryptocurrency exchange in the world has withdrawn its cryptocurrency bourse application. The company is looking to wind down its businesses in the country.
Binance was among 170 other companies that had submitted an application to the Monetary Authority of Singapore for approval to offer cryptocurrency services.
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Financial institutions and governments tighten crypto regulations
Financial institutions and governments from around the world have tightened their grip on the global crypto market in the past year. In many regions of the world, stringent regulations have been put in place, putting pressure on crypto exchanges such as Binance that have largely operated in an unregulated environment.
Singapore – a developing hub for the crypto market
Singapore is among the few countries in the world that had favorable regulatory conditions for firms operating in the cryptocurrency space. It is safe to say that the city-country was in pole position in the development of a formal licensing framework for crypto firms.
Binance’s withdrawal from Singapore is expected to put an end to speculation that it would become the global headquarters for the company.
Richard Teng, Chief Executive Officer, Binance Singapore said that the company has always put its users first, and the decision to wind down Binance Singapore was a tough one. He said that the company has appreciated the support received from the Monetary Authority of Singapore so far. The company will look forward to working with the entity again if opportunities arise in the future.
Binance’s Singapore entity has taken into account commercial, strategic, and developmental considerations while pulling out from Singapore.
What’s next for Binance Asia?
Binance Asia has said that it will shift its focus toward blockchain technology for the time being.
According to Chia Hock Lai, Co-chairman, Blockchain Association Singapore, not every crypto activity can be regulated. He said that many crypto players are on the lookout for separate unregulated and regulated entities to streamline their partnership and revenue models across different jurisdictions.
Following the recent announcement, all local employees will now join Binance’s global operations. Currently, the company is on the lookout for a new headquarters and the Middle East has emerged as one option.
More about Binance
Binance is the world’s largest cryptocurrency exchange in terms of the trade volume of cryptocurrencies. The company was founded in 2017 and was registered in the Cayman Islands.
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