Binance Singapore affiliate says will withdraw licence bid, shut native platform – Reuters

Biance app is seen on a smartphone on this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration
HONG KONG, Dec 13 (Reuters) – The Singapore affiliate of Binance, one of many world's largest cryptocurrency exchanges, mentioned on Monday it is going to withdraw its native licence utility and wind down its digital cost token enterprise within the broadly crypto-friendly city-state.
The corporate, which has come beneath rising scrutiny globally, didn’t give a purpose for its resolution past "strategic, business and developmental" issues and mentioned it could refocus the native unit's operations on changing into a blockchain innovation hub.
Governments and monetary watchdogs all over the world have intensified scrutiny of the cryptocurrency business this 12 months, posing a problem to exchanges which have thrived in a principally unregulated setting.
Singapore is a well-liked location for cryptocurrency corporations as a consequence of a relatively clear regulatory and working setting and is among the many forerunners globally in growing a proper licensing framework.
Binance's Singapore unit was considered one of properly over 100 cryptocurrency firms to use for a license to function in Singapore and had been allowed do enterprise whereas its license request was being processed.
Singapore issued its first licences this 12 months, together with to a unit of southeast Asia's largest financial institution DBS (DBSM.SI), nonetheless dozens of others have been withdrawn or rejected.
Binance mentioned its Singapore platform for buying and selling fiat and cryptocurrencies will shut by mid-February. In September, the corporate mentioned that due to native regulation, customers in Singapore wouldn’t be capable to commerce on its world platform.
A spokesperson for the Financial Authority of Singapore mentioned Binance Asia Providers had offered them with a plan for orderly cessation of its regulated cost companies which "will permit adequate time for patrons to hunt different suppliers, or, if they need, to liquidate their holdings."
"I feel this (Binance's withdrawal of its utility) signifies once more Singapore's licence regime is kind of stringent," mentioned Chia Hock Lai, co-chairman, Blockchain Affiliation Singapore.
"Having mentioned that, Binance additionally acknowledged that Singapore will stay as their blockchain innovation hub, so it’s nonetheless in step with the narrative that Singapore is a vital blockchain hub."
Monetary regulators in Hong Kong, Britain, Germany, and Japan amongst others have focused Binance, elevating points comparable to shopper safety and anti-money laundering checks. Some have banned the platform from sure actions, whereas others have warned shoppers that it was unlicensed to function. learn extra
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