The Singapore affilaite of Binance asks to withdraw its cryptocurrency local license application. Also, in the generally crypto-friendly city-state, the firm is expected to wind down its digital payment token business.
The company, which has come under increased scrutiny worldwide, offered no explanation for its decision other than “strategic, commercial, and developmental” reasons.
The organization announced it would reorient the local unit’s operations to become a blockchain innovation center.
This year has seen a slew of governmental and financial watchdogs increase their monitoring of the cryptocurrency sector, posing a problem for exchanges that have thrived in an unregulated environment.
Singapore has a favorable regulatory and operational climate for cryptocurrency companies, which is one of the reasons it is so popular as a destination.
It has aided the country in becoming one of the world’s most progressive movers in establishing a formal licensing system.
Singapore has granted its first licenses this year, including one to Southeast Asia’s largest bank DBS, but dozens have been withdrawn or denied.
The shutdown of Binance’s Singapore platform for trading fiat and cryptocurrencies will take place by mid-February. In September, the firm revealed that because of local rules, people in Singapore would not be able to trade on its global platform.
Binance has been targeted by several financial regulators, including the Hong Kong Securities and Futures (SFC) Commission, the Financial Conduct Authority in England and Wales, the German Federal Financial Supervisory Authority (BaFin), and the Japan Financial Services Agency.
Consumer protection and anti-money laundering checks have emerged as issues in these jurisdictions. Some jurisdictions have prohibited the platform from certain activities, while others have advised customers that it was unlawful to do so.