Binance.sg withdraws crypto license application

Binance.sg withdraws crypto license application

 

Major crypto exchange Binance has recently withdrawn its application with the Monetary Authority of Singapore (MAS) for an upcoming digital payment token (DPT) services license. 

 

Starting December 13, Binance.sg has announced it would stop onboarding new users and would disallow Singaporeans from depositing cryptocurrencies or fiat on the exchange.

 

By February 13 in 2022, Binance said it plans to “wind down” all of its services relating to dealing with cryptocurrency tokens. However, the exchange also made an announcement of taking no responsibility for the users’ assets after its self-determined deadline.

 

The platform had said that with immediate effect, users should start making plans of withdrawing their crypto and fiat from Binance.sg since accounts of registered users who have not undergone the mandatory KYC would be suspended.

 

Binance Singapore users, at present, are allowed buying and selling crypto using their existing assets until January 12, 2022. From January 13 onwards, Binance.sg users would be barred from both buying and selling crypto. 

 

During this phase, users are allowed only to withdraw and move their crypto tokens to third-party platforms or crypto wallets; and withdraw their SGD. It highlighted that all Singaporean accounts “must be closed by 13 February 2022.”

 

Binance is planning to make further arrangements for releasing users’ assets upon an official request to the company’s customer support division.

 

After the final date, Binance would not allow any Singapore users to close positions or withdraw crypto assets. The announcement said that the locked crypto assets would be held in an escrow account, and the fiat assets would be transferred to the users’ StraitsX Personal Account.

 

It also outlined that the company recommends that its users in Singapore “take action as soon as possible” before the deadline approaches for official account closure, i.e., 13 February 2022. It has stated that the BAS would not be held responsible for any losses that result from the users’ failure of withdrawing their assets and closing their accounts by 13 February 2022.

 

CEO of Binance, Changpeng Zhao, has explained that the exchange would still have a presence in Singapore’s market and that the withdrawal is connected to the recent acquisition of the Singapore-regulated private securities exchange Hg Exchange (HGX). 

 

The 18 per cent stake has signalled an attempt at overcoming the existing regulatory hurdles as HGX had recently been granted a recognized market operator license from the MAS.

 

Despite the ongoing regulatory scrutiny globally, Binance is continually exploring new jurisdictions for setting up localized crypto exchanges. 

 

Binance is also, reportedly, in conversation with Indonesia’s richest family, the Hartonos, for launching an exchange platform in the country.

 

 According to a Bloomberg report, Binance is due finalizing a crypto venture with Hartonos-controlled PT Bank Central Asia (BCA) very soon.

 

If approved, the new BCA partnership would allow Binance to launch a second crypto venture for the company in Indonesia. The crypto exchange has also been planning to expand to the United Kingdom in the upcoming six to eighteen months amid regulatory resistance.

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