Binance, the world’s largest crypto exchange, is reportedly trying to secure cryptocurrency services in Singapore again. The exchange’s custodial arm plans to seek permission to start providing crypto services in Singapore.
Although Singapore has been quite invested in crypto in the past, the country has certain challenges for the exchange. Just a year ago, in February, the crypto exchange closed its operations in Singapore.
Binance Asia Service, which is Binance’s affiliate in Singapore, had to suspend operations after withdrawing its local license application in December 2021. The reason stated by the crypto exchange was nothing more than “strategic, commercial, and development” issues.
However, the custodial arm of the crypto exchange, now called Ceffu, after Binance decided to change its name from Binance Secure Asset Fund for Users (SAFU), will apply for a Capital Market Services license with the Monetary Authority of Singapore (MAS).
Athena Yu, vice president at Ceffu, stated:
Given the city’s reputation for innovation, good corporate governance and a strong regulatory framework, it’s no surprise that institutional investors are attracted to setting up shop here.
MAS previously applied regulatory pressure on Binance, which caused the crypto exchange to exit the market when it decided not to renew Binance’s license in 2021 for failing to incorporate the required changes, according to regulators.
Jarek Jakubcek, head of law enforcement training at Binance, stated that after the license was revoked, the exchange has undergone many changes and now meets the requirements of the regulator.
Despite the exchange pausing services for retail investors in Singapore due to pressure from MAS, Binance still continues to offer crypto services to institutional clients from Singapore.
Binance Faces Opposition From US Watchdog
Market watchdogs in America are also applying strict regulatory pressure by opposing proposals made by exchanges. Binance.US, the arm of the United States crypto exchange, plans to acquire the assets of bankrupt crypto lender Voyager Digital.
However, it is understood that this acquisition plan may violate certain local securities laws. This heightened scrutiny comes after the collapse of FTX, and now, Binance.US is seeing opposition from US regulators on this deal.
The US Securities and Exchange Commission has also delisted the BUSD stablecoin issued by Paxos. Paxos was ordered to stop minting new BUSD tokens, causing the stablecoin’s market cap to drop by around 40%.
Protecting Customers
Last year, in October, MAS announced a proposal to expand its scope in order to better protect the interests of consumers. This plan for feedback from prominent industry players until the end of last year.
Now, reports indicate that it will be several months before the new rules related to Singapore’s consumer-centric crypto-structure take effect. This special framework will not allow companies to lend digital coins owned by retail customers, and will also mandate that client assets be kept separate from any company holdings.
Furthermore, MAS has refused a line of credit to finance crypto purchases. In the case of digital asset companies, they have to arrange valuations for retail investors before their clients want to trade virtual tokens.
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