Binance, the world's largest crypto exchange, is reattempting to secure a license to offer cryptocurrency services in Singapore. Despite facing increasing scrutiny from U.S. regulators, Binance is determined to pivot from retail to corporate clients in the country. The crypto exchange company's custodial arm will apply for a permit to offer such services in due course according to executives from the unit (via Nikkei Asia).
Jarek Jakubcek, head of law enforcement training at Binance, told Nikkei Asia that the company is trying hard to meet regulators' demands in Singapore. He said that Binance is hiring people with years of experience in law enforcement and regulations.
In December 2021, Binance withdrew its application for a license to operate as a crypto exchange due to its failure to comply with Singapore's anti-money laundering rules set by the country's regulator Monetary Authority of Singapore (MAS). Singapore's local authorities have a tough stance on crypto and related activities within its borders. In October 2022, MAS proposed regulatory measures to reduce the risk of consumer harm from cryptocurrency trading and to support the development of stablecoins as a credible medium of exchange in the digital asset ecosystem. The regulator also banned credit lines to fund crypto purchases, mandating digital asset firms to require administering clients before they can trade virtual tokens.
With FTX's collapse last year and the subsequent price drop of Bitcoin and other cryptocurrencies, the city-state implemented additional regulatory measures. This has led to concerns about whether Singapore will continue to be an appealing location for companies dealing in digital assets. Hong Kong, a competing financial hub, is also attracting investments from big crypto companies.
Nevertheless, it looks like Binance still sees value in having even a limited form of commercial presence in Singapore with its crypto business.
Source: Nikkei Asia
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