Binance is reapplying for a license to offer cryptocurrency services in Singapore, switching from serving retail to corporate clients, a year after quitting the trading market. Nikkei Asia in a story citing a company executive confirmed That its custodial subsidiary will submit an application for a license “in due time”
In December 2021, Binance Singapore issued a statement announcing the withdrawal of their application for a license to operate a cryptocurrency exchange. In February 2022, the business shut down its trading platform there.
according to reports, Binance restructured its domestic business in November to better serve Singaporean corporate clients. As a result, Ceffu replaced Binance Custody as the brand name. It intends to attract experienced investors looking for custody and other digital asset services.
“If you take a look at recent hirings, you will notice that Binance is hiring people with years of experience in law enforcement and regulations,”
said Jarek Jakubcek, head of law enforcement training at Binance, to Nikkei Asia.
The executive made a suggestion that the company is seeking to meet the Monetary Authority of Singapore’s regulations (MAS).
Binance agrees to meet all regulations
The CEO suggested that the business is attempting to adhere to the rules set forth by the Monetary Authority of Singapore (MAS). “It’s no surprise that institutional investors are drawn to set up shop here, given the city’s reputation for innovation, solid corporate governance, and a strong regulatory environment.” Since it increased regulation in the industry, the MAS has pressured financial firms to prevent retail bitcoin transactions.
The Monetary Authority of Singapore recently proposed a series of measures to restrict retail customers’ access to cryptocurrency. These rules would prevent investors from borrowing money to pay for their token purchases. They would also forbid companies from leasing or staking their coins to gain profits. Binance might be leaving the retail industry as a result.
Singapore has pursued regulation with vigor, and… monitoring guidelines since the market is still troubled by cryptocurrency bankruptcy. As a result of several complaints received between January and August 2021, the regulator noted last year that Binance had also been included in the investor alert list. The agency came under scrutiny for its decision to exclude FTX prior to its death.
Even outside of Singapore, the largest exchange by volume has encountered challenges. After the closure of the FTX cryptocurrency exchange, Binance has come under constant fire in the United States. Furthermore, a recent story asserted that Binance had carried out a “backroom operation” by transferring $1.78 billion in stablecoin to hedge funds.
Concerns regarding the exchange withholding money from users of its P2P marketplace emerged around the same time.