Following regulatory issues in countries like Germany, the UK, the US, Japan, and others, Binance now hit a new wall. This time, the exchange is seeing trouble in Singapore, once again accused of offering unlicensed service. Singapore’s MAS requested that the exchange halts all payment services that it used to provide to Singapore’s citizens.
Binance is the world’s largest crypto exchange by market cap, but despite its dominance and status, this has not been a good year for the platform. Throughout 2021, month after month, Binance has been having more and more regulatory issues due to its rich, but not entirely legal offerings.
As many likely remember, the exchange has been hit with accusations from regulators from all over the world, who claimed that it offered products that it wasn’t licensed to offer, such as its tokenized stakes. The exchange eventually agreed to remove them, but that was only the start of its troubles.
Major banks such as Barclays stopped sending payments to the exchange, under the excuse of wishing to protect users and their money, but in reality, the bank wanted to have nothing with the exchange that might soon feel the wrath of the regulators.
Binance runs into regulatory issues in Singapore
After experiencing the same regulatory issues in countries like the UK, Thailand, Malaysia, Japan, Germany, and more, Binance finally admitted to its mistakes, and promised to boost its compliance team by the end of the year, and see what else it may have done wrong. So far, it has announced mandatory KYC for all users, but despite its efforts, the troubles seem to keep coming.
The latest example is a new order from Singapore, issued by the country’s central bank. Singapore ordered that Binance must stop offering services regulated in Singapore, following a potential breach of the local payment rules.
Specifically, Singapore suspects that Binance may have breached the Payments Services Act by offering payment services to and soliciting business from the residents of the small country. The issue is once again the lack of the necessary licenses, according to the Monetary Authority of Singapore.
The MAS has already added the exchange to the investor alert list, which exists to warn consumers of risky companies offering services. The list will now point out Binance as an unregulated and unlicensed business, which is not allowed to offer payment services locally.
Binance’s license application is still under review
While Binance does operate globally, it doesn’t use a single platform to offer service to the entire world. It has local affiliates, some of which are meant for service-specific countries, while others, such as Binance Asia Services, provide service to multiple countries. Now, according to Binance, BAS has submitted an application to receive the necessary licenses. MAs, however, said that BAS is currently exempted from holding a license for the provision of digital payment token services, as the application is still under review.
MAS now expects that BAS will immediately start an orderly suspension of its facilitation of transfers of crypto payments between itself and Binance. Meanwhile, Binance’s unite in Singapore will inform the customers of the most appropriate arrangement as soon as that becomes possible.