It was announced Monday by Binance that some changes would affect its Singaporean platform, Binance.sg. Noting that the decision was not taken lightly, the exchange outlined: “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.”
According to Binance, with immediate effect, new user registrations will not be allowed on Binance.sg and existing users will not be able to deposit crypto or fiat on the platform. Exchange officials clarified, however, that “Users may continue to buy and sell crypto using their existing assets until 12 January 2022,” and urged customers to begin withdrawing their fiat and cryptocurrencies from the exchange.
In the period between Jan. 13 and Feb. 13, 2022, the exchange stressed that “Users can only withdraw and move their crypto to third-party platforms or crypto wallets; and/or withdraw their SGD.” “All accounts must be closed by Feb. 13, 2022,” it added.
Changpeng Zhao (CZ) explained on Twitter Monday why Binance has withdrawn its application to operate a local exchange in Singapore. CZ tweeted “Binance made a sizable investment into regulated exchange HGX last week. This investment made our own application somewhat redundant. We will continue to work through our partners to grow the crypto industry in Singapore.”
Binance announced last week that it had purchased an 18% stake in Singapore-regulated private securities exchange, Hg Exchange (HGX). Binance ceased providing some payment services in Singapore in September after the MAS issued a warning. In response, Binance stopped providing fiat deposit services, spot cryptocurrency trading, cryptocurrency purchases through fiat channels, and liquid swaps.
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There are other countries that have warned Binance about operating without a license besides Singapore. The exchange has also been warned by regulators in the U.S., U.K., South Africa, Australia, Norway, the Netherlands, Hong Kong, Germany, Italy, India, Malaysia, and Lithuania. Binance announced that regulatory compliance is a top priority in August.
Last week, Zhao stated: “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.”