Binance Expands To Singapore With New License Application
- The firm’s CEO and co-founder, Changpeng Zhao, has said that their Singaporean entity was in close touch with local regulators.
- If approved, Binance will be regulated under Singapore’s current AML and counterterrorist-financing rules.
Binance CEO Changpeng Zhao. CryptoMonedaseICOs
Binance, one of the biggest exchanges by trading volume, is attempting to expand its services to Singapore with a new license application, Bloomberg reported on 16 February.
According to the report, Binance has already applied for an operating license in Singapore under the island state’s new Payment Services Act 2019 (PSA), which was passed in late January.
During an interview with the publication Changpeng Zhao, the company’s CEO and co-founder, said:
“We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.”
Recently introduced by the Monetary Authority of Singapore (MAS), the updated PSA intends to regulate cryptocurrency payments and trading enterprises using its current anti-money laundering (AML) and counterterrorist-financing (CTF) rules.
Firms that wish to operate in the jurisdiction are required to first register, and then apply for an operating license, as well as comply with the Financial Advisers Act, Insurance Act, Securities and Futures Act and the Trust Companies Act. Existing crypto-based firms were given a month to register with MAS, after which they have six months to apply for their payment institution license.
Though quick to react, Binance is not the only firm attempting to operate under the new high regulatory standard. Bloomberg noted that London-based crypto exchange operator Luno, and Tokyo-based Liquid have also expressed their desire to apply for the license.
One of the largest crypto exchanges in Australia, the Independent Reserve, announced in January that it will be expanding to Singapore as well. Adrian Przelozny, the CEO and founder of the exchange, said that the decision was influenced by a number of positive moves made by Singaporean regulators, as well as the introduction of the updated PSA.
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.