Popular cryptocurrency exchange Binance, has reportedly withdrawn its application to run bourse services in Singapore and will proceed to shut down its crypto-service offerings in the crypto-friendly nation. The exchange didn’t provide concrete details for its surprising action, but stated that the decision to back away was due to strategic, commercial, and developmental reasons.
Binance has been making conscious efforts to get a license from authorities to run crypto services in Singapore since last year, after the Asian country suspended its operations. However, such efforts have ended abruptly, with Binance’s application withdrawal, leaving the world, especially Singaporeans in perplexity.
Following the withdrawal, the firm has stated that it will shut down fully on February 13 next year. The firm added that it would now refocus its goal by creating an innovation hub based on blockchain technology in the country.
Binance Will Allow Customers Liquidate Their Holdings
Binance revealed that its decision to shut down in February instead of sooner is to give Singaporean customers time to liquidate their assets on the platform and seek alternative exchanges for crypto services. According to Binance Singapore, the exchange always prioritize its customers over every other thing.
The crypto firm was among those that applied to the Monetary Authority to operate fully in the country following a temporary exemption. According to MAS, applicants operating under the exemption will have to suspend offering regulated crypto payment services.
Singapore has a provision that categorizes regulated and unregulated crypto services. Sometimes, large crypto firms consider having some activities distinctly branded as regulated and unregulated in an effort to optimize revenue and secure partnerships in various jurisdictions.
While the application withdrawal came as a shock, CEO of Binance Singapore branch Richard Teng, said that the firm will look forward to working with the regulatory agency in the future, thanking the agency for their assistance. Last week, co-founder Changpeng Zhao, stated that the Asian branch had invested in HGX exchange, which gave the exchange an 18% stake.
Financial Watchdogs Still Hampers On Regulation
Due to its flexible crypto regulations, Singapore has become the favorite location for many firms operating on cryptocurrency. The country is on the forefront of becoming a global leader in crypto licensing and the utilization of blockchain technology.
However, not every country is as flexible as Singapore when it comes to regulating digital assets. Their Asian counterparts China, has enacted some laws that have disrupted the use or trade of cryptocurrency within its jurisdictions. The populous nation is renowned for FUDs, with the latest one coming in September, when it banned all crypto-related activities entirely.
Regulatory agencies in Hong Kong and Germany have also stepped up efforts to enforce regulations in the nascent industry. The last few months in Hong Kong have been tough for crypto exchanges and businesses due to the country’s intensified crackdown that saw the exodus of FTX and Amber Group. Germany and other European Countries have set up AML regulations and Consumer Protection Act to safeguard investors.