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 software and wind down its digital fee token enterprise within the broadly crypto-friendly city-state.
The corporate, which has come underneath rising scrutiny globally, didn’t give a motive for its choice past "strategic, industrial and developmental" issues and mentioned it might refocus the native unit's operations on changing into a blockchain innovation hub.
Governments and monetary watchdogs around the globe have intensified scrutiny of the cryptocurrency business this yr, posing a problem to exchanges which have thrived in a largely unregulated setting.
Singapore is a well-liked location for cryptocurrency companies resulting from a relatively clear regulatory and working setting and is among the many forerunners globally in creating a proper licensing framework.
Binance's Singapore unit was one in every of properly over 100 cryptocurrency corporations 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 yr, 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with to a unit of southeast Asia's largest financial institution DBS (DBSM.SI), nonetheless dozens of others have been withdrawn or rejected.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 have the ability to commerce on its world platform.
A spokesperson for the Financial Authority of Singapore mentioned Binance Asia Companies had supplied them with a plan for orderly cessation of its regulated fee providers which "will permit enough time for purchasers to hunt different suppliers, or, if they need, to liquidate their holdings."
"I believe this (Binance's withdrawal of its software) signifies once more Singapore's licence regime is sort of stringent," mentioned Chia Hock Lai, co-chairman, Blockchain Affiliation Singapore.
"Having mentioned that, Binance additionally said that Singapore will stay as their blockchain innovation hub, so it’s nonetheless in keeping with the narrative that Singapore is an important blockchain hub."
Monetary regulators in Hong Kong, Britain, Germany, and Japan amongst others have focused Binance, elevating points akin to shopper safety and anti-money laundering checks. Some have banned the platform from sure actions, whereas others have warned customers that it was unlicensed to function. learn extra
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