Binance Singapore has announced plans to withdraw its application for a license allowing it to operate in Singapore. As a result, Binance will phase out Singapore users from the platform by February 13, 2022.
With Singapore having one of the most progressive crypto regulatory frameworks, it has become one of the most sought-after operating hubs by cryptocurrency exchanges. Around 170 crypto firms have applied for a Digital Payment Token License in Singapore.
Binance Withdraws Singapore License Application
With the license application, Binance Singapore was allowed to continue offering crypto services in the country while the application was being reviewed by the Monetary Authority of Singapore (MAS). However, the withdrawal of the license application means that this will no longer be possible.
The press release from Binance remarked following
“we are writing to you today to inform you that Binance Asia Services Pte Ltd (BAS) intends to withdraw its licensing efforts in Singapore and wind down its digital payment token (DPT) services in Singapore by February 13, 2022. The decision has not been made lightly, and we apologize in advance for any inconvenience this may cause.”
From February 13, the Binance.sg website will stop operating, and the exchange will close all the existing positions. Crypto traders will have to close their existing trading positions by the said date.
Binance Singapore will no longer accept new registrations. Moreover, it will not allow the existing users to deposit digital assets on the exchange. The only service that will remain available is crypto trading, which will run until January 12, 2022. After this date, users will require using third-party platforms to withdraw cryptocurrencies and fiat.
While Singapore’s crypto regulatory framework is pretty advanced compared to most countries, the MAS is one of the strictest regulators. Around 100 of the applications lodged by crypto trading firms have been withdrawn. Out of all the applications, the MAS has only approved four licenses.
Meanwhile, another leading cryptocurrency exchange platform — Huobi Global — has announced its intent to locate Asian headquarters in Singapore. The decision comes amidst the China ban on crypto trading that forced Huobi and other exchanges to leave the Chinese market.
Binance’ Future Plans
Binance Asia Services has announced that it will refocus its operations and transition towards becoming a technology, research, and development center.
An announcement issued by the exchange in November stated that Binance was looking for a location to establish its global headquarters. The exchange’s CEO, Changpeng Zhao, commented that the exchange has been operating under a decentralized model for the longest time, but this is about to change.
Setting up a physical location for its global headquarters will place Binance closer to getting into the good books of regulators. This year, the exchange has faced much regulatory scrutiny from various entities.
Binance US, the exchange’s affiliate arm in the US, is working towards an Initial Public Offering (IPO). Binance US will be following the footsteps of Coinbase, the leading exchange in the US that underwent a direct listing at NASDAQ earlier this year.