Binance, a crypto-exchange in Singapore is ending its operations. The company withdrew its application from the Monetary Authority of Singapore for a digital asset exchange. “Buying and selling of crypto from existing assets of users will be discontinued from 13 January 2022,” said Binance Singapore.
Binance withdraws its application for the operation of a cryptocurrency exchange in Singapore
Binance Monday announced changes that will affect all users of Binance.sg, its Singaporean platform. Noting that “The decision has not been made lightly,” the exchange detailed:
We are writing to you today to inform you that Binance Asia Services Pte Ltd (BAS) intends to withdraw its licensing efforts in Singapore and wind down its digital payment token (‘DPT’) services in Singapore by 13 February 2022.
Binance stated that new users cannot register on Binance.sg immediately and that existing users can’t deposit fiat or crypto on the platform.
However, the exchange clarified that “Users may continue to buy and sell crypto using their existing assets until 12 January 2022,” urging customers to start making plans to withdraw their fiat and cryptocurrencies from the platform.
Between Jan. 13 and Feb. 13, 2022, “Users can only withdraw and move their crypto to third-party platforms or crypto wallets; and/or withdraw their SGD,” the exchange stressed, noting that “All accounts must be closed by 13 February 2022.”
Binance Singapore’s CEO explains Why Crypto Exchange Operation Shut Down
Changpeng Zhao, Binance CEO (CZ), took to Twitter Monday explaining why his company had decided to withdraw its application to run a local Singapore exchange. He wrote:
Binance invested a large amount into regulated exchange HGX this week. The investment rendered our application redundant. To grow crypto in Singapore, we will work with our partners.
Binance, a Singapore-regulated private security exchange Hg Exchange (HGX), announced last week that it had acquired 18% of Binance.
After the MAS had issued a warning to Binance, the exchange stopped providing payments services and ended services for some customers in Singapore. Binance stopped offering fiat deposit services and spot trading in cryptocurrencies. It also prohibited the sale of fiat currencies through fiat channels.
Binance has been warned by other countries that it cannot operate without a license. Several other countries have warned Binance about the exchange’s illegal operation, such as the U.S. and U.K. Binance stated in August that regulatory compliance was a priority.
Zhao said last week: “We’re making a number of very substantial changes in organizational structures, product offerings, our internal processes, and the way we work with regulators … We’re in the process of setting up real offices, legal entities, a proper board, proper governance structures in most places.”
How do you feel about Binance’s decision to withdraw its application for a Singapore crypto exchange? Please comment below.
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